Gold touches near seven-month low on dollar strength; focus on US jobs data
GOLD inched down to hit a near seven-month low on Monday (Oct 2) as the US dollar stayed strong, with traders digesting a key US inflation report as they positioned for a slew of job market data due this week.
Spot gold was down 0.1 per cent at US$1,846.29 per ounce by 0039 GMT, its lowest level since Mar 10, after posting a 4 per cent decline last week, its biggest drop since June 2021. US gold futures fell 0.2 per cent to US$1,861.80.
The US dollar held near a 10-month high, while Treasury yields were off a 16-year peak.
Underlying US inflation moderated in August, with the annual rise in prices excluding food and energy falling below 4.0 per cent for the first time in more than two years, data showed on Friday.
Core personal consumption expenditures (PCE) price index, a measure of inflation closely watched by the Federal Reserve, has now averaged near the central bank’s 2 per cent target for the last three months.
New York Fed president John Williams said the central bank may be done with rate rises as inflation pressures, while still elevated, are moving back towards the official target.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Higher rates raise the opportunity cost of holding bullion, which is priced in US dollars and does not yield any interest.
Inflation in the eurozone fell to its lowest level in two years in September.
The US Congress passed a stopgap funding bill late on Saturday with overwhelming Democratic support to avoid the federal government’s fourth partial shutdown in a decade.
Spot silver dipped 0.71 per cent to a six-month low at US$22.00 per ounce, platinum rose 0.2 per cent to US$906.04 and palladium firmed 0.2 per cent to US$1,248.41.
Robust demand from the solar industry and limited supply growth from mines will buoy silver prices once the period of higher global interest rates is over, analysts said. REUTERS
Share with us your feedback on BT's products and services
