Gold prices stabilized, Monday, as traders assessed tensions in the Middle East against a US jobs report that dampened hopes for an interest rate cut by the Federal Reserve this year.
Bullion is trading near $2,650 an ounce after closing little changed on Friday. The market has been watching Israel’s response to the Iranian missile attack last week, which has pushed demand for safe-haven assets such as gold.
Gold fell in spot transactions, by 0.1% to $2,651.57 per ounce as of 7:29 a.m. in Singapore, which is below its all-time high of $2,685.58, which it reached in September. The Bloomberg Dollar Spot Index was flat. Silver and palladium prices rose, and platinum prices stabilized.
Gold prices have risen by about 30% this year – recording a series of record highs with optimism about interest rate cuts. Prices of the yellow metal also strengthened thanks to strong purchases by central banks and safe haven demand.
While traders are also evaluating interest rate expectations after US employment exceeded all estimates, prompting markets to reduce bets on the chance of a half-point cut in interest rates in November. Low interest rates tend to benefit the precious metal, because it does not pay interest.
Last updated: October 7, 2024 – 14:25
Suggest a correction
2024-10-08 02:42:02