Gold rises on softer oil prices; US jobs data, Fed rate outlook on tap
GLD•Other precious metals rally
Among other metals, spot silver XAG= gained 2.8% to $59.82 per ounce, platinum XPT= climbed 7.1% to $1,745.42, and palladium XPD= rose 7.1% to $1,355.13.
"The Platinum Group Metals are getting the full effect of a probable de-escalation in Iran with, being industrial metals, their fortunes being tied to a possible recovery in conventional off take," independent analyst Ross Norman said.
Gold gains as oil prices ease
Gold prices gained 1% on Tuesday, supported by a decline in oil prices that tempered inflation fears and lowered U.S. interest rate hike bets, while markets awaited further clues on the Federal Reserve's policy path.
Spot gold XAU= rose 1% to $4,092.43 per ounce by 12:50 p.m. EDT (1650 GMT), while U.S gold futures GCcv1 gained 1.5% to $4,149.50.
Fed comments and jobs data in focus
Earlier on Monday, Fed's New York President John Williams said he remained optimistic that inflation pressures were on track to ease gradually, but if they do not, the U.S central bank will not hesitate to respond with rate hikes.
Traders are now pricing in about a 57% chance of a rate hike in the central bank's September meeting after a divided Fed kept rates unchanged at its last policy meeting.
Market participants are now awaiting a series of U.S jobs reports this week, including the ADP employment report due on Wednesday and the nonfarm payrolls data on Friday.
Lower oil softens inflation and rate pressure
Oil prices fell to a three-week low after comments by Qatari and U.S. officials raised hopes for a diplomatic resolution to the Iran war that could improve oil flows through the Strait of Hormuz. Brent crude futures LCOc1 were down over 4% on the news. O/R
