Gold climbs on expectations of a Fed pause; a strong dollar limits gains

4 Sep 2023 , 09:44 AM

In response to U.S. data showing an increase in the unemployment rate, gold prices increased on Monday, although metal continued to trade below last session’s one-month highs due to a strong dollar.

Spot gold increased 0.2% from Friday’s high of $1,952.79 to $1,941.89 per ounce by 0127 GMT. To $1,967.90, U.S. gold futures increased by 0.1%.

Gold’s appeal to foreign purchasers decreased as the U.S. currency remained close to recent near-three-month highs. On Monday, there will be no trading because it is a holiday.

According to figures released on Friday, the number of jobs in the US increased in August, but the unemployment rate increased to 3.8% and wage growth slowed.

According to a former deputy chairman of the central bank, the real economy has yet not fully benefited from the U.S. Fed’s interest rate increases that started in March 2022.

In August, U.S. manufacturing fell for the tenth consecutive month, but the rate of fall reduced.

According to private surveys, the euro-zone’s manufacturing slump improved last month, indicating that the worst may be over for the region’s battered factories, and China’s surprising recovery provided some encouragement for export-dependent countries.

Last week, premiums on physical gold in China decreased from previous highs as safe-haven buying slowed in the assumption that stimulus would improve the economy of the world’s largest buyer of the metal.

The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings increased on Friday by 0.10%.

A minister announced on Sunday that Nigeria intends to establish a solid minerals corporation to draw investments for its mining industry.

Other prices included spot silver, which was down 0.1% at $24.13 per ounce, platinum, which was down 0.2% at $958.95, and palladium, which was up 0.3% at $1,221.26.

For feedback and suggestions, write to us at [e-mail]