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Gold holds near $4,158 as dovish Fed bets compete with a stronger dollar

CME FedWatch pricing shows only about a 20% chance of a Fed rate hike in October, down from nearly 70% last week.

Reported · Written up by our desk · Precious Metals

Gold prices started the week with a mild positive bias but stayed rangebound as traders weighed easing Fed rate hike expectations against a firmer US dollar and elevated Treasury yields, which limit demand for the non-yielding metal, according to FXStreet.

At the time of writing, XAU/USD traded around $4,158, up 0.35% on the day.

FXStreet pointed to US labor data that weakened the case for another hike at the Fed’s October 27 to 28 meeting, including Nonfarm Payrolls rising 29K in September versus a 90K forecast, the unemployment rate edging up to 4.2%, and annual wage growth slowing to 3.0%.

The outlet also cited the CME FedWatch Tool, which shows traders pricing in only around a 20% chance of an October rate hike, down from nearly 70% last week, helping to support gold even as Treasury yields remain near multi-year highs.

Latest closeGold $4,172.10 ▼0.7%

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