Gold rises on Fed rate cut bets, growth worries
GOLD prices rose on Monday, buoyed by expectations of another Federal Reserve interest rate cut in December and a slew of weak economic data that raised global growth worries.
Spot gold gained 0.7 per cent to US$4,027.88 per ounce by 0115 GMT.
US gold futures for December delivery rose 0.7 per cent to US$4,036.60 per ounce.
The US economy shed jobs in October amid losses in the government and retail sectors, while cost cutting and artificial intelligence (AI) adoption by businesses led to a surge in announced layoffs, data showed last week.
US consumer sentiment weakened to its lowest level in nearly 3-1/2 years in early November amid worries about the economic fallout from the longest ever US government shutdown, a survey showed on Friday.
Market participants now see a 67 per cent chance of a December Fed rate cut, according to CME FedWatch Tool. Non-yielding gold tends to do well in a low-interest-rate environment and during economic uncertainties.
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On Sunday, the US Senate appeared poised to move forward with a measure aimed at reopening the federal government and ending a 40-day shutdown that has sidelined federal workers, delayed food aid and snarled air travel.
Global shares got a lift in Asia on optimism that an end to the historic US government shutdown could be in sight, while the dollar was nursing losses from last week.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.16 per cent to 1,042.06 tonnes on Friday from 1,040.35 tonnes on Thursday.
Physical gold demand in India remained subdued last week as volatile prices deterred buyers and prompted dealers to offer steep discounts to lure them, while demand cooled in China on changing tax regulations.
Elsewhere, spot silver firmed 1.1 per cent to US$48.84 per ounce, platinum rose 1.2 per cent to US$1,563.25 and palladium added 1.2 per cent to US$1,396.75. REUTERS
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