Gold Holds Above $4,300 After Underwhelming US Jobs Data

Gold prices have held above $4,300 after the release of underwhelming U.S. jobs data, causing bets against a September rate hike to fall below 1%. According to Reuters, spot gold opened at $4,322 on Monday and has continued trading above $4,203.

The unexpected decrease in payrolls and subsequent downward revision of earlier months have cast doubts on the strength of the U.S. labor market. This shift in expectations has accelerated bets against a September rate hike to less than 1%, with futures now seeing a 44% chance, down from 67% prior to the weak labor data.

The weaker U.S. labor market is positive for gold, as it reduces the opportunity cost of holding gold and increases its attractiveness due to lower Treasury yields. The dollar has also declined, with the Dollar Index falling below 99.6 on Monday, leading to an increase in dollar-denominated gold.