Gold Gains on Fading Fed Hike Fears as Jobs Data Disappoints and Safe-Haven Demand Rises
Gold prices climbed on Monday as weakening US jobs data sharply reduced the likelihood of a Federal Reserve rate hike in October, pushing investors toward the precious metal as a safe-haven asset. Business Recorder
Spot gold rose 0.4 per cent to $4,158.17 per ounce, while US December gold futures gained 0.6 per cent to $4,186.40. The rally followed a disappointing US jobs report in which September non-farm payrolls grew less than expected, with figures for the prior two months also revised significantly lower.
Market expectations for an October rate hike collapsed to just 22 per cent, down from 64 per cent a week earlier. A December hike remains widely anticipated at 87 per cent probability. The Fed raised rates by 25 basis points in September, bringing its target range to 3.75–4.00 per cent.
“The softer labour market data has helped dial back October Fed hike expectations, which is providing gold some support,” said Tim Waterer, chief market analyst at KCM Trade.
Silver also surged 1.7 per cent to $61.40 per ounce, with platinum and palladium each gaining 0.6 per cent. Ongoing geopolitical tensions in the Middle East provided additional safe-haven tailwinds for precious metals.
Read our previous article on Gold Rates and other financial news here.
