Monday, 18 October, 2021

Gold prices flat

BENGALURU: Gold prices were flat on Monday as the bullion was caught between a dip in the dollar and fears that the US Federal Reserve would start paring stimulus this year despite weak jobs data.

Spot gold was flat at US$1,756.25 per ounce by 12.53am GMT. Prices hit a two-week peak on Friday after the payrolls data but pared gains during the session, report agencies.

US gold futures were unchanged at US$1,756.80.

The dollar index inched down 0.1 per cent. The benchmark US 10-year Treasury yields touched its highest level since early June on Friday.

Data from the Labor Department on Friday showed US nonfarm payrolls increased by 194,000 jobs last month way below economists’ forecast of 500,000.

The Fed may move to begin reducing its support for the economy next month despite a sharp slowdown in jobs gains last month as the latest US surge in Covid-19 cases crested and began to recede.

Bullion is seen as a hedge against the inflation and currency debasement likely from the widespread stimulus.