Gold inches up as October Fed rate hike prospects fade
GLD•Spot gold rose 0.3% to $4,153.32 per ounce and U.S. gold futures gained 0.5% to $4,182.40 as soft U.S. jobs data lowered expectations of an October Federal Reserve rate hike.
1. Gold prices edge higher
Gold prices inched higher in early Asian trade on Monday after recent soft economic data reduced expectations of a Federal Reserve rate hike in October. Spot gold was up 0.3% to $4,153.32 per ounce by 0022 GMT, while December U.S. gold futures rose 0.5% to $4,182.40.
2. Jobs data shifts rate outlook
U.S. job growth slowed more than expected in September, and payrolls for the prior two months were revised sharply lower. The report left policymakers’ inclination to hold rates steady this month intact, giving them more time to assess economic data. The Fed raised its benchmark overnight rate by 25 basis points last month to a range of 3.75%-4.00%.
3. Other metals also gain
Spot silver gained 1% to $60.97 per ounce, platinum added 0.4% to $1,705.70, and palladium rose 0.7% to $1,176.00. Rising interest rates often pressure gold because it does not pay interest.
