Gold extends losses for 8th straight session

Gold prices closed in the red for the eighth straight session today, Oct. 4, although the US dollar and bond yields declined after ADP data showed that the US private payrolls grew at less-than-expected pace in September.

Separate data indicated the continued flexibility of the US economy in the face of monetary tightening. US service activity advanced in September for the ninth month in a row, with factory orders also up more than expected in August, in line with expectations of strong economic growth in Q3 2023.

The CME FedWatch Tool data revealed that chances for the Fed to raise interest rates by 25 basis points increased to 23.7%, compared to 22.5% a week ago, bringing the US central bank’s benchmark rate to the 5.5%-5.75% range.

At settlement of today’s session, bullion for December delivery shed 0.35%, or $6.70, to stand at $1,834.80 per ounce.

The US dollar index, which measures the performance of the US currency against a basket of six major currencies, also decreased by 0.20% to 106.80 points at 08:45 pm Makkah time, after jumping to 107.24 points in early trading.