Gold gains as softer Fed expectations offset higher US yields
GLD•Spot gold rose 0.7% to $4,168.89 per ounce as traders reduced expectations of a Federal Reserve rate hike this month. Markets priced a 21% chance of an October increase and an almost 70% probability of a December increase.
1. Gold edges higher
Spot gold rose 0.7% to $4,168.89 per ounce by 1139 GMT, while U.S. gold futures for December delivery gained 1% to $4,196.90. Softer expectations for a Fed rate hike this month countered pressure from a firm U.S. dollar and elevated Treasury yields.
2. Markets reassess rate outlook
Markets pared bets on an October rate increase after September job growth came in below expectations and payroll figures for the previous two months were revised down. Traders saw a 21% chance of an October increase and an almost 70% probability of a December increase. Higher rates increase the opportunity cost of holding non-yielding gold.
3. Other metals and oil
Silver gained 0.6% to $61.4419, while platinum slipped 0.5% to $1,712.01 and palladium fell 0.7% to $1,164.73. Oil prices fell as resilient Middle Eastern crude exports and a G7 emergency stockpile release eased supply concerns.
