Gold Holds, Market Awaits Direction on US Interest Rates
Gold prices held steady after weak US employment data failed to alter market expectations for an interest rate cut. The precious metal had fallen moderately in the previous session, halting its five-day uptrend.
Gold bullion was trading around US$4,305 per ounce. The latest data showed the US labor market continuing to cool. However, market participants believe the Federal Reserve is not paying much attention to the data due to disruptions caused by the government shutdown.
Last week, the US central bank cut interest rates for the third consecutive time. This supported gold prices because this asset does not yield interest. The probability of a further interest rate cut in January is estimated at nearly 25%, while the market now awaits the release of inflation data and statements from key Fed officials.
In morning trading in Singapore, gold prices edged up 0.1% to US$4,306.05 per ounce. This remains close to the record high set last October. Meanwhile, silver and platinum prices weakened slightly, palladium strengthened, and the US dollar index closed slightly lower in the previous session. (az)
Source: Newsmaker.id
