Gold prices stables as more Fed rate hikes loom

Gold prices stabled on Monday, after climbing as much as 1.2 percent in the previous session. The cautious investors focused on the U.S. Federal Reserve’s rate-hike path following a mixed jobs data.

Spot gold stood at $1,611.48 per ounce, as of 0148 GMT.

U.S. gold futures stood at $1,722.50.

U.S. employers in August hired many workers than expected, but moderate wage growth and an increase in the unemployment rate to 3.7 percent suggested the labour market was starting to loosen.

Higher interest rates boost the opportunity cost of holding the non-yielding bullion and boosts the dollar.

The dollar index declined 0.1 percent having earlier hit a 20-year peak.

Stronger-than-expected platinum shipments to China in the first half of the year spurred shortages elsewhere, as supply declined from mines and recycling, according to the World Platinum Investment Council on Monday.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, decreased to 973.08 tons on Friday from 973.37 tons on Thursday.