Gold rises on hopes of Fed pause; buoyant dollar caps gains
Mon Sep 04 2023
Gold firmed on Monday, buoyed by hopes the Federal Reserve would take a pause from interest rate hikes this year after U.S. data showed a jump in unemployment rate, but bullion held below last session's one-month highs on a strong dollar.
FUNDAMENTALS
* Spot gold gained 0.2% to $1,941.89 per ounce by 0127 GMT, after climbing to as high as $1,952.79 on Friday. U.S. gold futures rose 0.1% to $1,967.90.
* The U.S. dollar stood not far from its recent near-three-month highs, making
gold less attractive for overseas buyers. U.S. markets will be closed for a
holiday on Monday.
* U.S. job growth picked up in August, but the unemployment rate jumped to 3.8%
and wage gains moderated, data showed on Friday.
* The full impact of the U.S. Fed's interest rate hikes that began in March
2022 has still not been completely transmitted to the real economy, a former
vice chairman of the central bank said.
* U.S. manufacturing contracted for a 10th straight month in August, but the pace of decline slowed.
* A downturn in euro-zone manufacturing eased last month, suggesting the worst
might be over for the bloc's beleaguered factories, while an unexpected rebound
in China offered some hope for export-reliant economies, private surveys
showed.
* Premiums on physical gold in China eased off recent highs last week as
safe-haven buying cooled on hopes that stimulus could help the top bullion
buyer's ailing economy.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said
its holdings rose 0.10% on Friday.
* Nigeria plans to set up solid minerals corporation to attract investments for
its mining sector, a minister said on Sunday.
* Elsewhere, spot silver was down 0.1% at $24.13 per ounce, platinum eased 0.2%
to $958.95 and palladium rose 0.3% to $1,221.26.