Gold steadies as dollar strength and Fed rate doubts balance out
Gold prices showed little movement on Monday despite a strengthening US dollar, as traders weighed mixed signals from the Federal Reserve and ongoing geopolitical tensions in the Middle East.
The US Dollar Index climbed 0.45% to 102.38, but weaker labor market data dampened expectations for a Fed rate hike in October, offering some support to gold. According to the FedWatch tool, traders now assign just an 18% probability to an October rate hike, though the chance of a December hike remains high at 88%. Tim Waterer, chief market analyst at KCM Trade, highlighted this shift as a key factor influencing gold's stability.
Among precious metals, gold futures for December delivery rose slightly to $4,164.20 per ounce, while spot gold dipped marginally by $1.06 to $4,140.13. Silver saw modest gains, with December futures up 1.50% to $61.335 per ounce, and spot silver increasing 1.10% to $61.0408. Platinum and palladium also posted small advances, rising 0.80% and 0.03% respectively.