Precious-Gold lackluster ahead of inflation data as oil prices climb
GLD•Other precious metals
Among other metals, silver XAG= edged 0.33% lower to $65.92 per ounce, platinum XPT= steady at $1,827.83 and palladium XPD= slid 2.7% to $1,351.39.
Jobs report and FedWatch odds
Spot gold fell as much as 2.4% on Friday after data showed U.S. job growth accelerated sharply in August while the unemployment rate held steady at 4.1%, reinforcing signs of resilience in the labor market.
Traders are now pricing in about a 60% chance of an interest rate hike at the central bank's policy meeting, according to the CME FedWatch Tool, up from about 50% before the data. FEDWATCH/
The U.S. producer price index data is due on Thursday and consumer price index figures on Friday.
Although gold is often viewed as a safeguard against inflation, rising interest rates tend to weigh on demand for the non-yielding metal.
Oil surge adds to rate-hike expectations
Oil prices touched multi-week highs after Yemen's Tehran-backed Houthis attacked Saudi energy facilities and Tehran threatened the United States with "economic warfare." O/R
Brent crude neared the $100-per-barrel mark, touching $99.46, its highest level since July 24, fueling inflation worries.
The market continues to absorb the stronger-than-expected U.S. jobs report and await upcoming CPI and PPI data, while higher oil prices are raising inflation concerns and supporting expectations for a September rate hike, said Peter Grant, vice president and senior metals strategist at Zaner Metals.
