Article content
Gold prices held above the key $1,700 per
ounce level on Monday, as hopes that the Federal Reserve might
Gold prices held above the key $1,700 per
ounce level on Monday, as hopes that the Federal Reserve might
slow the pace of rate hikes after mixed U.S. jobs data helped
offset pressure from a robust dollar.
Spot gold was steady at $1,711.62 per ounce by 0848
GMT. U.S. gold futures rose 0.1% to $1,724.
However, trading is expected to be thin with most of the
U.S. markets closed for Labour Day holiday.
Gold posted its best day in nearly a month on Friday after
U.S. data showed moderate wage growth in August and a rise in
Story continues below
the unemployment rate to 3.7% suggested the labor market was
starting to loosen.
“Expectations around future Fed rate hikes have softened
slightly but the jobs report will have to be paired with a good
inflation reading to have any material impact,” said Craig
Erlam, senior market analyst at OANDA.
“We may see some support for gold above $1,700 for now but
with the dollar so favored and central banks not easing off the
brake, further downside pressure may still come and a break
below $1,680 looks very possible.”
The European Central Bank is due to meet later this week,
where it is expected to deliver a large 75 basis-point interest
rate hike to tame record high inflation.
Fed’s next policy meeting is scheduled for Sept. 20-21.
Story continues below
Weighing on gold, the dollar index notched a 20-year
high against its rivals, making bullion expensive for holders of
other currencies.
European shares tumbled after Russia extended a halt on gas
flows down the Nord Stream 1 pipeline to Europe, sparking
worries over energy prices.
Spot silver rose 0.5% to $18.11 per ounce, platinum
gained 0.7% to $840.50, while palladium eased 0.1%
to $2,021.45.
Stronger-than-expected platinum shipments to China in the
first half of the year spurred shortages elsewhere, as supply
declined from mines and recycling, the World Platinum Investment
Council said.
(Reporting by Brijesh Patel in Bengaluru; Editing by Maju
Samuel)
Story continues below