(Bloomberg) -- Gold steadied in Asia after plunging below the $1,700 an ounce mark last week, as strong US jobs data intensified concerns that the Federal Reserve will be more aggressive with interest-rate hikes.
The precious metal last week had it's largest weekly gain since July. It had been set for a stronger advance before US data showing initial jobless claims rising more than forecast reduced appetite for the haven asset.
Nonfarm payrolls data on Friday showed a strong labor market with the unemployment rate returning to a historic low, leaving the Fed on a hawkish monetary policy track. The dollar and Treasury yields climbed following the data release, putting pressure on gold, which fell as much as 1.3%. Relentless rate hikes have weighed on gold throughout the year, causing it to slide around 17% from its year-high in March.
All eyes will now be on this week's US inflation data, after a hotter-than-expected reading in August tempered hopes of a nascent slowdown that might signal an end to rate hikes some time in next year.
Spot gold was little changed at $1,696.46 an ounce as of 7:41 a.m. in Singapore, after finishing last week up 2.1%. The Bloomberg Dollar Spot Index was steady. Silver and palladium were flat, while platinum declined.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
