Gold firms as investors focus on US data for more Fed cues

Gold prices inched higher on Monday as investors waited for a series of U.S. economic data this week that could shed more light on the Federal Reserve‘s interest rate path.

FUNDAMENTALS

* Spot gold was up 0.3% at $4,091.89 per ounce, as of 0114 GMT. U.S. gold futures for December delivery were steady at $4,094 per ounce.

* Focus this week will be on U.S. data releases, including the September nonfarm payrolls report on Thursday, for clues on the health of the world’s largest economy.

* The Commerce Department’s Bureau of Economic Analysis said on Friday it was working to update its schedule of economic data releases affected by the recently ended government shutdown. * Traders are currently pricing in a 46% probability of a quarter-point Fed rate cut next month, down from 50% in last week.
* Citing worries about inflation and signs of relative stability in the labour market after two interest rate cuts this year, a growing number of Fed policymakers are signalling reticence on further easing.
* Non-yielding gold tends to do well in a low-interest-rate environment and during times of economic uncertainties.
* Meanwhile, the dollar index held firm against its rivals, making gold less attractive for other currency holders.

* Physical gold demand across major Asian markets was subdued last week as elevated prices curtailed buying activity, with discounts in India reaching their highest level in five months.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.47% to 1,044.00 metric tons on Friday from 1,048.93 tons on Thursday.

* Elsewhere, spot silver rose 0.8% to $50.94 per ounce, platinum gained 0.1% to $1,542.37, and palladium climbed 1.2% to $1,401.50.