Gold Hovers Near Seven-week High As Fed Hike Bets Ease
(RTTNews) - Gold prices held steady on Monday after U.S. employers unexpectedly cut jobs in July and hiring figures for the prior two months were also revised downward, helping ease the risk of an immediate U.S. interest-rate hike.
Spot gold edged up by 0.1 percent to $4,347.76 an ounce after surging to its highest level in seven weeks on Friday. U.S. gold futures were up 0.2 percent at $4,407.34.
The U.S. dollar edged up slightly but hovered near a two-month low as investors weighed ongoing uncertainty surrounding the Strait of Hormuz and looked forward to the release of key U.S. data this week, including the consumer and producer price index readings for additional clues on the Federal Reserve's rate trajectory.
After an unexpectedly weak July jobs report, the odds of a Federal Reserve rate hike next month have declined to 44 percent from 55 percent earlier, according to CME Group's FedWatch tool.
On the geopolitical front, Tehran warned that it will not reopen the Strait of Hormuz unless the United States meets a series of conditions, denting hopes for a return to stability in global energy markets.
Tehran stressed that the United States must meet a number of conditions - including compensation, the lifting of sanctions, and an end to military threats - before access to the strategic waterway is restored.
Iran's parliamentary Committee on National Security and Foreign Policy has approved its own bill on managing the Strait of Hormuz.
U.S. President Donald Trump signaled patience and suggested that he's prepared to allow economic pressure on Iran to mount rather than escalate militarily.
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