Gold prices fell in the international market on Monday as stronger-than-expected US employment data fuelled expectations that the Federal Reserve may raise interest rates this month.
Spot gold fell 0.8 per cent to $4,394.12 an ounce at 6:26pm Bangladesh time, while US gold futures for December delivery also declined 0.8 per cent to $4,439.40 an ounce.
Ole Hansen, head of commodity strategy at Saxo Bank, told Reuters that higher bond yields following the strong US jobs report and growing expectations of a rate hike at the Fed’s September 16 meeting were weighing on gold and silver prices.
US employment growth accelerated in August, while the unemployment rate remained unchanged at 4.1 per cent. Markets are now awaiting US inflation data for further clues about the Fed’s monetary policy.
According to the CME FedWatch tool, traders put the probability of a rate hike at next week’s policy meeting at around 60 per cent, up from 50 per cent before Friday’s jobs report.
Among other precious metals, silver fell 0.8 per cent to $65.64 an ounce and platinum declined 0.4 per cent to $1,813.31. Palladium rose 0.2 per cent to $1,389.03.
In Bangladesh, the price of 22-carat gold is currently Tk235,146 per bhori, including VAT. The prices of 21-carat, 18-carat and traditional-method gold stand at Tk224,590, Tk192,864 and Tk157,522 per bhori, respectively.
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