Gold Dips as Dollar Strengthens Despite Lower Fed Rate Hike Expectations
Gold prices dipped on Monday as the US dollar strengthened, though losses were moderate following recent weak economic data that lowered expectations of a Federal Reserve rate hike in October.
Spot gold declined by 0.3% to $4,131.61 per ounce by 0422 GMT, while US gold futures for December delivery dropped 0.1% to $4,159.30. The US dollar index rose 0.6%, making gold more expensive for investors using other currencies.
Recent data showed slower-than-expected US job growth in September, along with downward revisions for the prior two months. This softer labor market data reduced the likelihood of a Fed rate hike in October to 18%, though traders still anticipate an 88% chance of a hike in December, according to the CME FedWatch Tool.
Tim Waterer, chief market analyst at KCM Trade, noted that while the weaker labor data has softened October hike expectations, the broader Fed hiking cycle remains intact. Among other metals, spot silver gained 0.9% to $60.94, platinum rose 0.5% to $1,706.18, and palladium fell 0.2% to $1,165.40.