Tuesday, October 4

Gold flat as more Fed rate hikes loom


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Gold prices were flat on Monday, after

jumping as much as 1.2% in the previous session, as cautious

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investors focused on the US Federal Reserve’s rate-hike path

following a mixed jobs data.

FUNDAMENTALS

* Spot gold was unchanged at $1,611.48 per ounce, as

of 0148 GMT.

*US gold futures were flat at $1,722.50.

* The Fed is seen sticking to sharp interest rate hikes in

coming months to cool inflation, but rising US unemployment

and a slowdown in wage growth has traders betting that borrowing

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costs next year may not end up quite as high as previously

anticipated.

* US employers hired more workers than expected in August,

but moderate wage growth and a rise in the unemployment rate to

3.7% suggested the labor market was starting to loosen.

* Higher interest rates increase the opportunity cost of

holding the non-yielding bullion and boosts the dollar.

* The dollar index inched 0.1% lower having earlier

hit a 20-year peak.

* Stronger-than-expected platinum shipments to China in the

first half of the year spurred shortages elsewhere, as supply

declined from mines and recycling, the World Platinum Investment

Council said on Monday.

* Holdings of SPDR Gold Trust , the world’s largest

gold-backed exchange-traded fund, fell to 973.08 tonnes on

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Friday from 973.37 tonnes on Thursday.

* Speculators cut net long position by 9,599 contracts to

20,726 in week to Aug. 30, while net short position increased in

COMEX silver, the US Commodity Futures Trading Commission

(CFTC) said on Friday.

* Spot silver was steady at $18.03 per ounce,

platinum dipped 0.2% to $833.34 and palladium fell

0.3% to $2,015.81.

DATA/EVENTS (GMT)

0145 China Caixin Services PMI

0500 India S&P Global Svcs PMI

0750 France S&P Global Svcs, Comp PMIs

0755 Germany S&P Global Svcs PMI

0755 Germany S&P Global Comp Final PMI

0800 EU S&P Global Serv, Comp Final PMIs

0830 UK Composite PMI Final

0830 UK Reserve Assets Total

(Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi

Aich)



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