Gold rises as expectations of Fed rate hike in October recede

Gold prices rose in early Asian trading on Monday after weak economic data reduced expectations of a Federal Reserve interest rate hike in October. Spot gold increased 0.3% to $4,153.32 per ounce, and US gold futures rose 0.5% to $4,182.40. Data showed US job growth slowed more than expected in September, nearly ruling out another rate hike this month.

Gold prices rose in early Asian trading on Monday after recent weak economic data reduced expectations of a Federal Reserve interest rate hike in October. Spot gold increased 0.3% to $4,153.32 per ounce, and US gold futures for December delivery rose 0.5% to $4,182.40. Data on Friday showed that US job growth slowed more than expected in September, and nonfarm payrolls for the previous two months were revised sharply downward, nearly ruling out another rate hike by the Fed this month. Policymakers at the Fed were already leaning toward not raising interest rates for a second consecutive month. The US central bank last month raised its benchmark overnight interest rate by 25 basis points to a range between 3.75% and 4.00%. Higher interest rates often pressure gold, as they make holding the non-yielding asset less attractive. The article presents a neutral economic report based on market data.