Gold rose above $4,150 an ounce on Monday, retracing part of the previous session’s losses after weaker-than-expected US employment data eased pressure on the Federal Reserve to continue raising interest rates. Figures released on Friday showed the US economy added just 29,000 jobs in September, far below the consensus forecast of a 90,000 increase, following a downwardly revised gain of 133,000 in August. The unemployment rate climbed to 4.2%, while annual wage growth unexpectedly slowed to 3.0%, its weakest pace since May 2021.
Following the data, markets moved to price in nearly an 80% probability that the Fed will leave rates unchanged at its meeting this month, while expectations for a December hike held around 69%. At the same time, persistently elevated US Treasury yields continued to pressure precious metals, with the 10-year yield trading near its highest level since 2002. Investor sentiment was further influenced by mounting geopolitical risks in the Middle East, as Saudi-backed Yemeni forces launched a full-scale military offensive to retake territory held by Iran-aligned Houthi fighters.
