Gold prices moved higher on Monday morning as investors reduced expectations that the US Federal Reserve will raise interest rates this month after recent economic data showed slower job growth in the United States.
Spot gold rose 0.4% to $4,158.17 per ounce, while US gold futures gained 0.6% to reach $4,186.40 per ounce.
Other precious metals also recorded gains. Spot silver climbed 1.7% to $61.40 per ounce, platinum increased 0.6% to $1,708.48 per ounce, and palladium rose 0.6% to $1,175.04 per ounce.
The rally came after traders significantly lowered their expectations for an October interest rate hike. Market expectations for a rate increase dropped to 22%, compared with 64% just one week ago.
Weaker employment data has strengthened the view that the Federal Reserve may avoid further tightening in the near term. Lower interest rate expectations typically support gold prices because the metal does not pay interest, making it more attractive when borrowing costs and bond yields are expected to remain lower.
Investors are continuing to monitor economic data and Federal Reserve signals closely as uncertainty remains over the direction of US monetary policy and the broader economic outlook.
