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Gold rises toward $4,160 as weak jobs data cools rate-hike bets

Spot gold rebounds after US nonfarm payrolls rose 29K in September, versus a 90K forecast, trimming Fed hike odds this month to about 22.1%.

Reported · Written up by our desk · Precious Metals

Gold is holding gains above $4,150 and trading near $4,160 in early Asian hours on Monday, with prices supported by a rebound in response to weaker-than-expected US jobs data, according to FXStreet.

The outlet links the move to a drop in US Dollar pressure after the US nonfarm payrolls report showed payrolls rose 29K in September, following an August increase of 133K, after a revision from 162K.

FXStreet also notes that traders have trimmed expectations for additional Fed rate hikes, with markets seeing about a 22.1% chance of a hike this month, down from roughly 70% earlier in the week, as indicated by the CME FedWatch Tool.

Despite the gold support from cooling rate-hike bets, FXStreet adds that higher interest rates are typically a headwind for gold since it does not pay interest, and it cites inflation concerns tied to rising oil prices amid ongoing US-Iran conflicts.

Latest closeGold $4,157.80 ▲0.4%

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