PRECIOUS-Gold muted as U.S. jobs data raises doubts over Fed rate-hike path

Shafaq News/ Gold prices were steady on Monday, having posted their best day in a month in the last session after a U.S. jobs report showed unemployment rising in August, suggesting the Federal Reserve might slow the pace of rate hikes.

Spot gold was flat at $1,711.69 per ounce by 0352 GMT). U.S. gold futures were little changed at $1,723.10.

Gold rose as much as 1.3% on Friday after data showed U.S. employers hired more workers than expected in August, but moderate wage growth and a rise in the unemployment rate to 3.7% suggested the labor market was starting to loosen.

"With the Fed meeting just over two weeks away and their 'blackout period' fast approaching, any comments from Fed members this week will be scrutinised by traders as they have the ability to move the needle on Fed policy," said Matt Simpson, a senior market analyst at City Index.

"Any comments alluding to a 75 bp hike could keep gold prices under pressure."

Fed's next policy meeting is scheduled for Sept. 20-21.

Gold tends to perform badly amid a high-interest rate environment as it yields no interest.

The dollar index hit a 20-year high, making gold expensive for holders of other currencies.

Speculators cut net long position in COMEX gold by 9,599 contracts to 20,726 in the week to Aug. 30, while net short position increased in COMEX silver, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

Spot silver was steady at $18.03 per ounce, platinum unchanged at $835.24 per ounce, while palladium gained 0.4% to $2,031.18.

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

Source: Reuters