Gold Prices Stabilize Ahead of US Inflation Data Amid Fed Rate Hike Bets
Gold prices recovered from intraday losses on Monday, but gains remain limited as traders await US inflation data due later this week. The precious metal has been affected by Fed rate hike bets and a stronger dollar, which is acting as a tailwind for the US currency.
The latest US Nonfarm Payrolls report showed an addition of 162K new jobs in August, exceeding expectations. This, combined with other details, suggests that the labor market remains resilient, according to TD Securities. However, Fed Governor Christopher Waller's comments last Thursday hinted at a possible steady interest rate policy if upcoming data confirms cooling inflation pressures.
The widening US-Iran confrontation has added to geopolitical risks and underpinned the safe-haven dollar. This has fueled inflation fears and supported oil prices, weighing on gold prices.