Gold steady as firm dollar counters softer US rate-hike bets
GLD•Spot gold was little changed at $4,141.81 an ounce as a firm dollar offset support from easing expectations for a US rate hike in October. December rate-hike bets remained at an 86% probability.
1. Gold prices hold steady
Spot gold was at $4,141.81 per ounce by 0033 GMT, while US December gold futures rose 0.3% to $4,169.10. The firm dollar made greenback-denominated commodities more expensive for holders of other currencies.
2. Rate outlook and demand
Expectations for an October Federal Reserve rate hike eased after September job growth slowed more than expected and payrolls for the prior two months were revised lower. Traders still priced an 86% probability of a December hike. Rising interest rates increase the opportunity cost of holding gold, which central bankers described as a strategic reserve asset amid concerns over government debt and geopolitical instability.
