Gold flat as more Fed rate hikes loom

Mon Sep 05 2022
Lucy Harlow (4091 articles)
Gold flat as more Fed rate hikes loom

Gold prices were flat on Monday, after jumping as much as 1.2% in the previous session, as cautious investors focused on the U.S. Federal Reserve’s rate-hike path following a mixed jobs data.

Fundamentals
Spot gold was unchanged at $1,611.48 per ounce, as of 0148 GMT.

U.S. gold futures were flat at $1,722.50.

The Fed is seen sticking to sharp interest rate hikes in coming months to cool inflation, but rising U.S. 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.

U.S. employers hired more workers than expected in August, but moderate wage growth and a rise in the unemployment rate to 3.7% suggested the labor market was starting to loosen.

Higher interest rates increase the opportunity cost of holding the non-yielding bullion and boosts the dollar.

The dollar index inched 0.1% 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 tons on Friday from 973.37 tons 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 U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Spot silver was steady at $18.03 per ounce, platinum dipped 0.2% to $833.34 and palladium fell 0.3% to $2,015.81.

Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe