Gold and silver rally on fading Fed interest rate hike bets

Gold and silver prices advanced on Monday, October 5, propelled by diminishing investor expectations of a Federal Reserve interest rate increase later this month.

Spot gold rose 0.4% to $4,158.17 per troy ounce, while US gold futures for December delivery gained 0.6% to trade at $4,186.40. Silver posted sharper gains, climbing 1.7% to reach $61.40 per ounce.

Precious metals drew broad support from softer-than-projected US labor market data, which trimmed the perceived probability of an October Fed rate hike from 64% down to roughly 22%. Sustained geopolitical friction across the Middle East further underpinned demand for safe-haven assets despite softening crude oil prices easing near-term inflation anxieties.

N. Tebrizli