Gold rises on hopes of US Fed pause; buoyant dollar caps gains
GOLD firmed on Monday (Sep 4), buoyed by hopes the US Federal Reserve would take a pause from interest rate hikes this year after US data showed a jump in unemployment rate, but bullion held below last session’s one-month highs on a strong dollar.
Spot gold gained 0.2 per cent to US$1,941.89 per ounce by 0127 GMT, after climbing to as high as US$1,952.79 on Friday. US gold futures rose 0.1 per cent to US$1,967.90.
The US dollar stood not far from its recent near-three-month highs, making gold less attractive for overseas buyers. US markets will be closed for a holiday on Monday.
US job growth picked up in August, but the unemployment rate jumped to 3.8 per cent and wage gains moderated, data showed on Friday.
The full impact of the US Fed’s interest rate hikes that began in March 2022 has still not been completely transmitted to the real economy, a former vice chairman of the central bank said.
US manufacturing contracted for a 10th straight month in August, but the pace of decline slowed.
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A downturn in eurozone manufacturing eased last month, suggesting the worst might be over for the bloc’s beleaguered factories, while an unexpected rebound in China offered some hope for export-reliant economies, private surveys showed.
Premiums on physical gold in China eased off recent highs last week as safe-haven buying cooled on hopes that stimulus could help the top bullion buyer’s ailing economy.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.10 per cent on Friday.
Nigeria plans to set up solid minerals corporation to attract investments for its mining sector, a minister said on Sunday.
Elsewhere, spot silver was down 0.1 per cent at US$24.13 per ounce, platinum eased 0.2 per cent to US$958.95 and palladium rose 0.3 per cent to US$1,221.26. REUTERS
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