Gold flat as more Fed rate hikes loom
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GOLD prices were flat on Monday (Sep 5), after jumping as much as 1.2 per cent in the previous session, as cautious investors focused on the US Federal Reserve’s rate-hike path following a mixed jobs data.
Spot gold was unchanged at US$1,611.48 per ounce, as of 1.48 am GMT.
US gold futures were flat at US$1,722.50.
The Fed is seen sticking to sharp interest rate hikes in coming months to cool inflation, but rising US unemployment and a slowdown in wage growth has traders betting that borrowing costs next year may not end up quite as high as previously anticipated.
US employers hired more workers than expected in August, but moderate wage growth and a rise in the unemployment rate to 3.7 per cent suggested the labour market was starting to loosen.
Higher interest rates increase the opportunity cost of holding the non-yielding bullion and boosts the dollar.
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The dollar index inched 0.1 per cent lower having earlier hit a 20-year peak.
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 on Monday.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell to 973.08 tonnes on Friday from 973.37 tonnes on Thursday.
Speculators cut net long position by 9,599 contracts to 20,726 in week to Aug 30, while net short position increased in Comex silver, the US Commodity Futures Trading Commission (CFTC) said on Friday.
Spot silver was steady at US$18.03 per ounce, platinum dipped 0.2 per cent to US$833.34 and palladium fell 0.3 per cent to US$2,015.81. REUTERS
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