Gold edges higher as markets weigh US jobs data impact on Fed path
The market now prices in a roughly 20% chance of a hike in October, down from 70% a week ago
Gold prices have risen slightly as investors consider the potential impact of recent US job market data on the Federal Reserve's interest rate decisions. The precious metal, which has seen a significant decline last week, is currently trading around US$4,150 per ounce. In contrast, the US non-farm payrolls increased by 29,000 in September, falling short of expectations in a Bloomberg survey of economists.
This figure has eased expectations for an immediate rate hike by the Fed, as higher interest rates typically diminish gold's attractiveness, given its lack of yield. Despite a slowdown in the US job market, inflationary pressures remain, as evidenced by the recent rise in oil prices due to escalating tensions in the Middle East.
US Treasury Secretary Scott Bessent has downplayed concerns over rising borrowing costs, stating they are in line with global trends. Fed officials have, however, continued to hint at a less-than-immediate rate increase, as hinted at in the minutes from their September meeting where the first rate hike in three years was implemented.
The Bloomberg Dollar Spot Index, a measure of the US currency, has remained relatively stable after three consecutive weeks of increases. Spot gold has climbed 0.3 percent to US$4,153.66 per ounce as of 8:40 am Singapore time. Other precious metals, including silver, platinum, and palladium, have also seen gains, with silver rising 1.3 percent to US$61.15 an ounce after a significant drop last week.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
