Ammon News - Gold prices eased on ​Monday as the US dollar firmed, though losses were limited after ‌recent soft economic data sharply reduced expectations of a Federal Reserve rate hike in October.

Spot gold fell 0.3% at $4,131.61 per ounce by 0422 GMT. US gold futures for December delivery lost 0.1% to $4,159.30.

The US ​dollar index rose 0.6%, making dollar-denominated metals more expensive for holders of ​other currencies.

US job growth slowed more than expected in September, and ⁠the nonfarm payrolls count for the prior two months was revised sharply ​lower, data showed on Friday.

"The softer labour market data has helped dial back October Fed ​hike expectations, which is providing gold some support. But the market is still treating the Fed’s broader hiking cycle as intact even if a pause occurs in October," said Tim Waterer, ​chief market analyst at KCM Trade.

Traders now see an 18% probability of a ​Fed rate hike in October, while still pricing in an 88% chance of an increase in ‌December, ⁠according to the CME FedWatch Tool.

The US central bank last month raised its benchmark overnight interest rate by 25 basis points to the 3.75%-4.00% range, its first rate increase in three years.

Oil prices slipped as rising crude exports from the Middle East and G7 nations' ⁠release ​of oil added to supplies, offsetting concerns about further ​damage to Gulf oil.
Among other metals, spot silver gained 0.9% to $60.94, platinum was up 0.5% to $1,706.18 and ​palladium fell 0.2% to $1,165.40.


Reuters