Gold Stuck Below $4,400 as Fed Rate Hike Bets Weigh
Gold prices stuck below $4,400 on Monday as traders waited for US inflation data due later this week. The precious metal had recovered some of its earlier losses during the first half of the European session, but any significant upside was limited by market expectations of a potential interest rate hike by the Federal Reserve (Fed).
The US economy added 162K new jobs in August, surpassing consensus estimates of 56K. The Unemployment Rate remained unchanged at 4.1%, while annual wage inflation fell to 3.1% from 3.2%. These numbers contributed to higher bets on a Fed rate hike and put pressure on gold prices.
TD Securities argued that the labor market remains resilient, with solid job growth and improving conditions. However, Fed Governor Christopher Waller suggested that rates might be kept steady if data confirms cooling inflation pressures.