Gold Climbs as October Fed Rate Hike Odds Diminish
Gold prices edged higher on Monday, supported by fading expectations of a Federal Reserve rate hike in October. The shift in sentiment followed weaker-than-expected U.S. economic data, particularly in the labor market. Spot gold climbed 0.3% to $4,153.56 per ounce by 0631 GMT, while U.S. gold futures for December delivery rose 0.5% to $4,181.70.
Friday's data showed that U.S. job growth slowed more in September than anticipated, with revisions lowering the nonfarm payrolls count for the previous two months. Tim Waterer, chief market analyst at KCM Trade, noted that the softer labor market data has reduced the likelihood of a Fed rate hike in October, providing some support for gold. However, he emphasized that the broader hiking cycle remains intact, even if a pause occurs next month.
The gains in gold were limited by a firmer dollar, which typically makes gold more expensive for holders of other currencies. Despite the recent rise, the market's focus remains on the Fed's broader monetary policy, which could influence gold prices in the coming months.