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🇦🇪 United Arab Emirates /Economy & Trade

Gold Slips as Strong US Jobs Data Fuels Fed Rate-Hike Bets

From Khaleej Times · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Named sources Context piece
  • Spot gold fell 0.8% to $4,392.88 an ounce, while US gold futures for December delivery dropped 0.8% to $4,438.70.
  • Traders raised the implied probability of a rate hike at the Fed’s next meeting to 58% from 50% before the jobs report.
  • Investors were awaiting US producer and consumer price data, while higher oil prices kept inflation concerns elevated.

Gold eased on Monday as a strong US jobs report strengthened expectations that the Federal Reserve could raise interest rates this month. Investors turned to upcoming inflation data for further clues about the central bank’s policy direction.

Spot gold fell 0.8% to $4,392.88 per ounce by 1036 GMT. US gold futures for December delivery also dropped 0.8% to $4,438.70, while trading volumes remained low because of a US holiday.

Ole Hansen, head of commodity strategy at Saxo Bank, said gold and silver had moved lower after Friday’s employment report lifted bond yields and reinforced expectations of a Fed rate hike on Sept. 16. He said gold had found buying interest below $4,400 during the session, while support stood around $4,320 and resistance remained above $4,500.

Gold and silver have moved in the opposite direction to energy prices, extending their declines after Friday’s strong US jobs report lifted bond yields and reinforced expectations of a Fed rate hike on 16 September.

· Ole HansenThe Saxo Bank commodity strategist explained the pressure on precious metals after the US employment report.

US data showed that job growth accelerated sharply in August, while the unemployment rate held at 4.1%. The CME FedWatch Tool put the chance of a rate increase at next week’s policy meeting at 58%, up from 50% before the employment data was released.

The producer price index is due on Thursday, followed by the consumer price index on Friday. Inflation concerns also remained elevated after a weekend exchange of strikes on shipping pushed oil prices higher. Iran said it would announce a new restricted zone in the Gulf and maps for a new shipping corridor through the Strait of Hormuz in the coming days.

Gold often serves as an inflation hedge, but higher interest rates can reduce the appeal of bullion because it does not pay interest. Silver fell 1% to $65.48 an ounce, platinum declined 0.2% to $1,817.67, and palladium rose 0.6% to $1,395.

In today’s session, gold has twice found buying interest below $4,400, well ahead of key support around $4,320, while resistance continues to emerge above $4,500.

· Ole HansenHansen described the trading levels observed during the session.
About this summary

Originally published by Khaleej Times in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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