Gold Rises as Fed October Rate Hike Odds Diminish
Gold prices saw a slight rise on Monday as recent weak economic data reduced the likelihood of a Federal Reserve rate hike in October. Spot gold climbed 0.3% to $4,153.56 per ounce by 0631 GMT, while US gold futures for December delivery increased 0.5% to $4,181.70.
US job growth slowed more than expected in September, and previous months' payroll data was revised downward. Tim Waterer, chief market analyst at KCM Trade, noted that the softer labor market data has lowered expectations of a Fed rate hike in October, providing some support for gold. However, traders still see an 81% chance of a rate increase in December, according to the CME FedWatch Tool.
The US dollar's strength limited gold's gains, as the dollar index rose 0.4%, making gold more expensive for holders of other currencies. Meanwhile, geopolitical tensions in the Middle East could continue to influence gold prices through their impact on oil prices and inflation.
Other precious metals also saw gains, with spot silver rising 1.7% to $61.40, platinum up 1.1% to $1,716.92, and palladium adding 0.3% to $1,165.40.