Gold Steady as Stronger Dollar Balances Rate Hike Expectations
Gold prices remained relatively stable on Monday, despite a stronger US dollar. The greenback's rise offset some of the support that gold typically receives from reduced expectations of a Federal Reserve rate hike in October.
The US Dollar Index climbed 0.45% to 102.38, reflecting the dollar's strength. Tim Waterer, chief market analyst at KCM Trade, noted that weak labor market data had lowered the likelihood of a Fed rate hike this month, providing some relief for gold prices.
As of Monday morning, gold futures for December delivery were trading at $4,164.20 per ounce, up $1.90, while spot gold stood at $4,140.13 per ounce, down $1.06. Other precious metals also saw mixed movements, with silver futures gaining 1.50% and platinum rising 0.80%.
Traders currently see an 18% chance of a rate hike in October, with the probability of a December hike still high at 88%, according to the FedWatch tool.