Title : Gold muted as U.S. jobs data raises doubts over Fed rate-hike path
Sep 5, 2022 7:09 AM ET
Gold prices were steady on Monday, having posted their best day in a month in the last session after the U.S. jobs report showed a rise in unemployment in August, suggesting that the Federal Reserve may slow the pace of rate hikes.
"With the Fed meeting just over two weeks away and its 'lock-in period' fast approaching, any comments from Fed members this week will be scrutinized by traders as they have the ability to move the Fed's policy needle," said Matt Simpson, senior market analyst at City Index.
"Any comments hinting at a 75 basis point hike could keep gold prices under pressure." (FEDWATCH)
The Fed's next monetary policy meeting is scheduled for Sept. 20–21.
"Gold gained Friday as more Americans returned to the labor force. "Any easing of the tight labor market will help the Fed control inflation and potentially reduce its need to tighten rates aggressively," ANZ said in a note.
Gold tends to misbehave in a high interest rate environment, as it does not produce interest.
Speculators reduced net long positions in COMEX gold by 9,599 contracts to 20,726 in the week ended August 30, while net short positions increased in COMEX silver, the U.S. Commodity Futures Trading Commission (CFTC) reported Friday.
Stronger-than-expected platinum shipments to China in the first half of the year led to shortages elsewhere as supply dwindled at mines and recycling centers, according to the World Platinum Investment Council.