Gold climbs as October Fed rate hike prospects dim
Gold prices edged higher in early Asian trading on Monday as recent weak economic data reduced the likelihood of a Federal Reserve rate hike in October. Spot gold rose 0.3% to $4,153.32 per ounce by 0022 GMT, while US gold futures for December delivery climbed 0.5% to $4,182.40.
The latest US job market report showed slower-than-expected growth in September, with significant downward revisions for the prior two months. This data further diminished expectations of a Fed rate hike this month, aligning with policymakers' cautious approach after last month's 25 basis point increase to the 3.75%-4.00% range.
Higher interest rates typically weigh on gold prices, making the non-interest-bearing asset less attractive to investors. Meanwhile, geopolitical tensions persisted as Yemen's Saudi-backed government announced a major military campaign against Iran-backed Houthi forces.
Other precious metals also saw gains, with spot silver up 1% to $60.97, platinum rising 0.4% to $1,705.70, and palladium increasing 0.7% to $1,176.00. Upcoming economic events include various PMI reports and the US ISM Non-Mfg PMI for September.