Gold steadies near 5-month peak on easing rate hike view –
Gold prices held steady near a five-month peak hit early on Monday, supported by a disappointing U.S. jobs report that fuelled speculation that the Federal Reserve may stop raising interest rates sooner than expected.
Spot gold XAU= was up 0.1 percent at $1,248.96 per ounce, as of 0432 GMT, after hitting its highest since July 11 at $1,250.55 earlier in the session.
U.S. gold futures GCcv1 rose 0.1 percent to $1,254.2 per ounce.
U.S. non-farm payrolls increased by 155,000 jobs last month, below economists’ median forecast of 200,000 jobs and the wage increase was softer than expected. Fed policymakers have struck a cautious tone about the economic outlook, possibly flagging a turning point in its monetary policy. tends to gain when rate hike expectations recede because lower rates reduce the opportunity cost of holding non-yielding bullion. Lower interest rates also tend to weigh on U.S. yields and the dollar, in which gold is priced.
“There is also some safe-haven demand coming back in gold,” said Argonaut Securities analyst Helen Lau.
The dollar slipped against the yen and the euro, while global stocks extended their slump on worries over slowing growth and fears that a fresh flare-up in tensions between U.S. and China could quash chances of a trade deal. USD/ MKTS/GLOB
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