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Gold holds above $4,150 as Fed hike bets fade

Gold prices moved higher on Monday after soft US economic data sharply cut expectations of a Federal Reserve rate hike in October. The shift increased the appeal of the non-yielding asset.

Spot gold was up 0.4 percent at $4,158.17 per ounce by 0150 GMT, according to Reuters. US gold futures for December delivery rose 0.6 percent to $4,186.40.

US job growth slowed more than expected in September. The economy added just 29,000 jobs, far below the 90,000 expected. The unemployment rate rose to 4.2 percent.

Traders now see only a 22 percent chance of a Fed rate hike in October, down from 64 percent a week ago, the CME FedWatch tool showed. They still price in an 87 percent chance of a December increase.

In India, gold futures on the MCX for December fell nearly 1 percent to Rs 1,49,370 per 10 grams as a firm dollar weighed on prices. Comex gold traded marginally higher at $4,163.50 per ounce in New York.

Silver gained 1.7 percent to $61.40 per ounce. Platinum and palladium also moved up.

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