Gold subdued as US jobs data firms bets for smaller rate cut

Oct 7 – Gold prices eased on Monday as bets firmed for a smaller U.S. rate cut after a surprisingly strong jobs report, while market participants awaited inflation data and comments from Federal Reserve officials for further cues.

* Spot gold slipped 0.1% to $2,650.79 per ounce, as of 0030 GMT. U.S. gold futures rose 0.1% to $2,670.20.

* Gold prices fell on Friday after a stronger-than-expected U.S. jobs report poured cold water on expectations for an aggressive Fed rate cut next month, boosting the dollar.

* Data showed that U.S. job gains increased by the most in six months in September and the unemployment rate fell to 4.1%, pointing to a resilient economy.

* Traders now see a 95% probability that the Fed will cut rates by only a quarter percentage point in November, according to CME’s FedWatch tool. They have scaled back expectations for a 50 basis-point cut to 0% from 28%.

* Chicago Fed President Austan Goolsbee called the latest U.S. jobs report “superb” and said more labour market data along those lines would boost his confidence that the economy is at full employment with low inflation.

* Gold tends to be a preferred investment in a low interest rate environment and during political and economic unrest.

* This week, market participants will focus on minutes of the Fed’s last policy meeting, and U.S. Consumer Price Index and Producer Price Index data. A slew of U.S. central bank officials are also speaking this week.

* Israel bombed Hezbollah targets in Lebanon and the Gaza Strip on Sunday ahead of the one-year anniversary of the Oct. 7 attacks that sparked its war, as Israel’s defence minister declared all options were open for retaliation against arch-enemy Iran.

* Spot silver rose 0.3% to $32.26 per ounce. Platinum gained 0.2% to $989.92 and palladium rose 1.1% to $1,022.92.

0600 Germany Industrial Orders MM Aug

0600 Germany Manufacturing O/P Cur Price SA Aug

0600 Germany Consumer Goods SA Aug

0600 UK Halifax House Prices MM Sept

0600 UK Halifax House Prices YY Sept

0745 France Reserve Assets Total Sept

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