Gold eases as robust US payrolls boost rate-hike bets; inflation data in focus
Spot gold slipped 0.5% as traders raised the odds of a Federal Reserve rate hike after August U.S. job growth accelerated sharply, official data showed.
- Gold prices nudged lower on Monday as strong United States jobs data reinforced expectations for higher interest rates, with job growth accelerating while the unemployment rate held steady at 4.1%.
- Traders are pricing in a 58.4% chance of a rate hike at the Federal Reserve's September 15-16 meeting, CME's FedWatch tool showed, as higher interest rates typically weigh on the appeal of non-yielding bullion like gold.
- Tim Waterer, chief market analyst at KCM Trade, said the real missing piece of the puzzle arrives this week with United States CPI, as markets await United States PPI data for policy clarity.
- Among other metals, spot silver eased 0.2% at $66.03 per ounce, platinum lost 0.8% at $1,805.53, and palladium declined 0.7% to $1,396.08, reflecting broader pressure on non-yielding assets.
- A strong inflation print would reinforce expectations of a Fed hike, lifting yields further and weighing more heavily on gold as market participants await these critical indicators.
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20 Articles
Gold slips as strong US jobs data boosts rate-hike expectations
London: Gold prices fell on Monday as stronger-than-expected US jobs data reinforced expectations that interest rates could rise further, while investors looked ahead to key US inflation reports due later this week.Spot gold was down 0.6 per cent at US$4,402.86 per ounce by 0420 GMT, after declining 1 per cent on Friday.US gold futures for December delivery fell 0.6 per cent to US$4,447.60 per ounce.Data released on Friday showed that US job gro…
Gold started the week lower as expectations of an interest rate cut weakened following strong US employment data. Markets are awaiting US inflation data this week for new clues regarding the Fed's September interest rate decision. So what's the latest on gold? Here are the details...
Today, on Monday, gold prices stabilized, with investors expecting US inflation data during the current week, looking for indications of the Federal Reserve's interest rate path.
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