Gold nudges lower as dollar holds firm
GLD•Spot gold fell 0.3% to $4,131.61 an ounce as the U.S. dollar index rose 0.6%. Softer U.S. labor data reduced expectations of an October Federal Reserve rate hike, limiting gold’s losses.
1. Gold edges lower
Spot gold fell 0.3% to $4,131.61 per ounce by 0422 GMT, while U.S. gold futures for December delivery lost 0.1% to $4,159.30. The dollar index rose 0.6%, making dollar-priced metals more expensive for holders of other currencies.
2. Rate expectations shift
U.S. job growth undershot expectations in September, and payrolls for the prior two months were revised sharply lower. Traders saw an 18% probability of a Federal Reserve rate hike in October and an 88% chance of an increase in December. The central bank raised its benchmark rate by 25 basis points last month, to a 3.75%-4.00% range.
3. Other market factors
Yemen’s internationally recognised government said it was launching a campaign to recapture areas controlled by the Houthis. Oil prices slipped as rising crude exports from the Middle East and releases by G7 nations added to supply. Silver gained 0.9% to $60.94 per ounce, platinum rose 0.5% to $1,706.18, and palladium fell 0.2% to $1,165.40.
