Gold holds gains above $4,150 as traders trim bets on Fed rate hikes
Gold price (XAU/USD) gains momentum to near $4,160 during the early Asian trading hours on Monday. The precious metal rebounds as weaker-than-expected US Nonfarm Payrolls (NFP) data weigh on the US Dollar (USD).
Gold prices surged above $4,150 on Monday due to traders reducing expectations of Federal Reserve (Fed) rate hikes, following weaker-than-anticipated US Nonfarm Payrolls (NFP) data. September's NFP rose by 29K, falling short of the market's expectation of 90K, which had initially been revised from 162K to 133K. The US Dollar (USD) weakened due to the disappointing jobs report, causing gold to rebound.
The Fed's more hawkish tone was emphasized by Fed Chairman's higher-than-average score of 9.2/10, signaling a stronger inclination towards further tightening. Analysts noted that rising oil prices due to the US-Iran conflicts may heighten inflation concerns, putting downward pressure on gold. Despite this, the yellow metal remains a safe-haven asset, often sought by investors during turbulent times, and is seen as a hedge against inflation and depreciating currencies, as it does not rely on a specific issuer or government.
Central banks, being the largest gold holders, diversify their reserves and buy gold to reinforce their currencies' strength during economic uncertainty.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 5 other outlets
- British Pound softens as US Dollar gains despite easing Fed rate hike odds fxstreet.com
- Japan stocks gain, Asian shares rise as Fed hike bets ease, oil gains businesstimes.com.sg
- Stocks upbeat as Fed rate hike bets recede freemalaysiatoday.com
- Asian stocks rise as weak U.S. jobs data eases Fed hike bets; Japan surges investing.com
- Global Market Today: Asian shares rise as Fed hike bets ease, oil gains economictimes.indiatimes.com
