Gold held near a seven-week high on Monday after weak U.S. jobs data pushed traders to scale back bets on a September Fed rate hike. Lingering Middle East tensions added safe-haven support, while silver, platinum and copper all advanced.
Spot gold rose 0.3% to $4,354.51 an ounce as of 03:03 ET (07:03 GMT) on Monday, building on last week's move to its highest level since June 17. U.S. gold futures also inched 0.3% higher, to $4,414.40.
Weak jobs data reshapes Fed bets
Gold's advance follows Friday's data showing the U.S. economy unexpectedly shed jobs in July, with the prior month's employment gains revised sharply lower. The surprise weakness led traders to sharply pare bets on a rate increase next month: futures markets now price the odds of a hike at the Sept. 15-16 meeting as below even, compared with a greater-than-even chance previously. Lower rates reduce the opportunity cost of holding non-yielding bullion, which tends to support gold. Traders are now awaiting U.S. consumer price data due Wednesday and producer prices on Thursday, with a softer reading seen reinforcing expectations for a less restrictive Fed policy.
Iran-Oman shipping talks keep safe-haven bid alive
Geopolitical risk is also in focus. Iran said it was nearing a final pact with Oman to establish new shipping lanes through the Strait of Hormuz, though it added that Washington still needs to meet several conditions before the waterway can reopen. Such tensions generally lend safe-haven support to gold, but a fresh rise in oil prices complicates the inflation outlook and weighs on expectations for Fed easing.
Silver, platinum and copper also advance
Elsewhere in metals, silver rose 1.3% to $64.36 an ounce. Platinum gained 0.5% to $1,757.64.
Benchmark London Metal Exchange copper futures added 0.6% to $14,126.33 a ton, while U.S. copper futures climbed 0.7% to $6.635 a pound. According to ING analysts: "Copper has rallied sharply on expectations of US import tariffs", as traders rush metal into the U.S. and physical markets tighten. The analysts added that any policy disappointment could put that tariff premium to the test.
Source: Investing.com (Commodities & Futures News)
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