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Gold steady near $2,000/oz mark after soft US jobs data

Gold prices held steady near the key $2,000-per-ounce level on Monday after weak U.S. jobs data raised hopes that the Federal Reserve is done raising interest rates, sending the dollar and bond yields lower.

FUNDAMENTALS

* Spot gold was little changed at $1,990.43 per ounce by 0100 GMT and U.S. gold futures were steady at $1,997.60.

* The U.S. Labor Department’s report on Friday showed that nonfarm payrolls increased by 150,000 jobs in October, much less than the expected 180,000 increase, partly due to strikes at Detroit’s Big Three automakers.

* The dollar was up 0.1% after hitting a six-week low on Friday, while Benchmark 10-year Treasury yields were at 4.5910% after hitting a five-week low.

* Asian shares rallied for a fourth straight session after markets moved to price in earlier rate cuts in the United States and Europe.

* Traders are now pricing in a 95% chance that the U.S. central bank will leave rates unchanged in December, according to the CME FedWatch tool.
* Lower interest rates decrease the opportunity cost of holding gold.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.20% to 863.24 tonnes on Friday from 861.51 tonnes on Thursday.

* In the Middle East, Israel on Sunday rejected growing calls for a ceasefire in Gaza, with military specialists saying that forces are set to intensify their operations against Palestinian Islamist group Hamas.

* Spot silver eased 0.1% to $23.18 per ounce, platinum fell 0.4% to $926.20 and palladium was flat at $1,118.99.

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