Gold Climbs as Fed Rate Hike Odds Decline in October

Gold prices rose on Monday following weaker-than-expected U.S. economic data, which reduced the likelihood of a Federal Reserve rate hike in October. Spot gold climbed 0.4% to $4,158.17 per ounce, while U.S. gold futures for December delivery increased 0.6% to $4,186.40.

The slowdown in U.S. job growth in September and downward revisions for the prior two months lowered expectations of an October rate hike. Traders now see only a 22% chance of a rate increase next month, down from 64% a week earlier, though they still anticipate an 87% likelihood of a hike in December.

Tim Waterer, chief market analyst at KCM Trade, noted that while the softer labor market data has reduced October hike expectations, the broader Fed hiking cycle remains intact. Geopolitical tensions, particularly in the Middle East, could also influence gold prices by affecting oil markets and inflation outlook.

Other precious metals saw gains as well, with spot silver rising 1.7% to $61.40 per ounce, platinum up 0.6% to $1,708.48, and palladium firming 0.6% to $1,175.04.