Gold steady as firm dollar counters softer U.S. rate hike bets
Spot gold held its ground at $4,141.81 per ounce as the dollar firmed, making greenback-denominated commodities more expensive for holders of other currencies. Expectations of a U.S. rate hike in October eased after data showed U.S. job growth slowed more than expected.
Oct 6 (Reuters) — Gold prices were little changed on Tuesday as a firmer dollar offset support from easing expectations of a Federal Reserve rate hike this month. 81 per ounce by 0033 GMT. 10. The dollar held firm, making greenback-denominated commodities more expensive for holders of other currencies.
The 10- and 30-year US Treasury yields hit 24-year highs on Monday as recent negative sentiment in the bond market prevailed. USD/ US/ Expectations of a US rate hike in October eased after data on Friday showed US job growth slowed more than expected in September and nonfarm payrolls for the prior two months were revised lower. However, traders are still pricing an 86% probability of a Fed rate hike in December, according to CME's FedWatch Tool. Rising interest rates increase the opportunity cost of holding non-yielding gold.
Gold remains a strategic reserve asset as concerns over rising government debt and geopolitical instability boost its appeal as a haven from risk, two central bankers said on Monday, even after this year's surge in bond yields. Data showed that US services sector activity slowed in September, while strong domestic demand stretched supply chains and pushed a measure of prices paid by businesses for inputs to its highest level in more than four years, suggesting inflation could remain elevated into 2027.
Elsewhere, Saudi-backed Yemeni government forces staged a lightning advance to retake the coast around the Bab el-Mandeb Strait up to the city of Mocha, the government said, pushing the Iran-backed Houthis out of most of the areas they seized last month. 39. com;)