Gold edges up early Monday as prospects of a Federal Reserve interest rate hike in October faded following comments by officials and key economic reports that came out last week.
U.S. job growth slowed more than expected last month in data released Friday, indicating that a soft labor market may not be resilient in the face of another rate hike. Additionally, Fed policymakers said they might need more time to consider their next moves on interest rates and the Fed’s favorite inflation measure, personal consumption expenditures price index, came in below expectations. The Fed closely watches both inflation and the labor market when setting monetary policy.
While gold got support from the dwindling expectations of a rate hike in October, high oil prices from the war in Iran, a strong dollar and the likelihood of worsening inflation going forward kept prices under pressure.
December gold futures fell 3.7% last week to settle at $4,162.30 an ounce on Comex, after the front-month contract fell 1% Friday. Bullion dropped 6.6% last month after rising 9.1% in August and gaining 1.7% in July. It is down 4.1% so far this year after rallying 64% in 2025. The December contract is up $18.3 (+0.44%) an ounce to $4180.60 and the DG spot price is $4146.30.
The U.S. added just 29,000 jobs last month, missing all estimates, and the unemployment rate rose to 4.2%. The Labor Department also revised the nonfarm payrolls figure down for the previous two months.
Fed Vice Chair Philip Jefferson said last week that more time may be needed to weigh additional rate hikes, and New York Fed President John Williams also indicated he sees no urgency to enact a rate hike.
About 78% of the investors tracked by the CME FedWatch Tool are now betting that the Fed will keep interest rates unchanged in October, a switch from 29% a week ago, when 71% anticipated a 25 basis point rate increase.
The Fed last month raised interest rates for the first time in three years, increasing the benchmark rate to 3.75% to 4.00%, in large part because of inflation linked to high energy prices. The central bank indicated that another hike might be coming this year. Higher rates are considered bearish for precious metals.
Before last month’s rate hike, the Fed had kept interest rates unchanged this year after three previous rate cuts. The next Fed policy meeting is Oct. 28, six days before the U.S. midterm elections. The higher prices of goods are being seen as a pivotal issue in the election.
December silver futures plunged 6.8% last week to settle at $60.42 an ounce on Comex after the front-month dropped 1.2% Friday. The most-active contract touched a record above $115 in January. Silver tumbled 9.6% in September after climbing 16% in August and sliding 3.6% in July. It is down 14% so far this year after rising 141% in 2025. The December contract is currently up $1.460 (+2.42%) an ounce to $61.875 and the DG spot price is $61.37.
Spot palladium slid 8.6% last week to $1,165.00 an ounce after declining 1.9% Friday. Palladium lost 11% last month after rallying 5.7% in August and adding 5.8% in July. It is down 28% in 2026 after rising 74% last year. Currently, the DG spot price is up $7.80 to $1183.00.
Spot platinum decreased 5.2% last week to $1,687.70 an ounce after falling 1.8% Friday. Platinum fell 4.6% last month after increasing 7.5% in August and gaining 6.6% in July. Platinum is down 17% so far this year after increasing 122% in 2025. The DG spot price is currently up $32.10 an ounce to $1722.10.
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