Gold hovers near $4,132 as Fed hike bets dip

October 05, 2026 (MLN): Gold prices were steady on Monday as softer-than-expected US labour data sharply reduced market bets on an interest rate increase by the Federal Reserve this month, boosting the appeal of the non-interest-bearing metal.

Currently, spot gold is down 0.18% to $4,132.22  an ounce as of [10:01 am] PST, according to data reported by Mettis Global.

Data released on Friday showed US employers added fewer jobs than forecast in September, with payroll figures for the previous two months also revised down significantly, according to CNBC.

Following the report, the CME FedWatch Tool put the odds of a Fed hike at the October meeting at 22%, sharply lower than 64% a week earlier.

Traders continue to see an 87% likelihood of a hike in December.

On the geopolitical front, Yemen's internationally recognised, Saudi-backed government said on Sunday it was starting a large-scale military campaign to retake all territory held by the Iran-backed Houthis.

Meanwhile, oil prices eased as higher crude shipments from the Middle East and a supply release by G7 nations offset worries over possible further damage to Gulf energy infrastructure amid the Iran war.

Among other precious metals, spot silver rose 1.7% to $61.40 per ounce. Platinum added 0.6% to $1,708.48, and palladium also gained 0.6% to $1,175.04.

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