Gold Prices Rise in Asia as Soft US Job Growth Lowers Rate Hike Chances

Gold prices moved higher during early Monday trading in Asia after weak US job growth figures lowered expectations for a Federal Reserve rate hike in October. Spot gold climbed to $4,153.32 per ounce, while silver and platinum also saw price increases. US job growth slowed more than expected in September, and prior payroll numbers were revised lower. This softer employment data led traders to lower the chance of an October rate hike to 22 percent from 64 percent a week earlier, according to the CME FedWatch Tool. Meanwhile, US gold futures for December delivery rose 0.6 percent to $4,186.40, and spot silver gained 1.7 percent to $61.40 per ounce.

Market Reactions

Tim Waterer, chief market analyst at KCM Trade, noted that the softer labor market data provided gold with support, though markets still view the broader hiking cycle as intact. Waterer also pointed to Middle East developments, noting that geopolitical events continue to influence gold through oil prices and inflation. Yemen's Saudi-backed government launched a military campaign against Iran-backed Houthis, while oil prices slipped due to rising crude exports and G7 supply releases. Other precious metals also rose, with platinum up 0.6 percent to $1,708.48 per ounce and palladium firmer by 0.6 percent at $1,175.04.

Context

Precious metals like gold often act as safe-haven assets when economic uncertainty rises and interest rate hike expectations fall. Lower interest rates generally make non-yielding assets like gold more attractive to investors because holding cash yields smaller returns. Global events and currency shifts continue to guide everyday investment choices in commodities.