Gold gains as October Fed rate hike prospects fade
GLD•Spot gold rose 0.3% to $4,153.56 an ounce as soft U.S. jobs data reduced expectations of an October Federal Reserve rate hike, while a firmer dollar limited gains. Traders saw an 18% chance of an October increase and an 81% chance of a December increase.
1. Gold supported by jobs data
Spot gold rose 0.3% to $4,153.56 per ounce by 0631 GMT on Monday, while U.S. December gold futures gained 0.5% to $4,181.70. U.S. job growth slowed more than expected in September, and payrolls for the previous two months were revised sharply lower.
2. Rate outlook and dollar
Traders priced an 18% probability of a Federal Reserve rate hike in October and an 81% chance of an increase in December. The Fed raised its benchmark rate by 25 basis points last month to a range of 3.75%-4.00%, its first increase in three years. The dollar index rose 0.4%, limiting gold’s gains.
3. Other metals and risks
Yemen’s internationally recognized government said it was launching a campaign to recapture areas controlled by the Houthis. Silver gained 1.7% to $61.40 per ounce, platinum rose 1.1% to $1,716.92 and palladium added 0.3% to $1,165.40.
