Fed rate hike anticipations leads to rise in gold price

The gold price surged by nearly $40 or over 3% on Friday, at its peak and is trading only slightly weaker at around $1,135 per troy ounce as the new week gets underway. A disappointing US labour market report was to blame for the sharp price rise. 

"Only 142,000 new jobs were created in September, moreover, the figures for the preceding months were downwardly revised and wage pressure was surprisingly subdued. This sparked doubts about whether the US Federal Reserve would in fact implement a first interest rate hike before the year is out", says Commerzbank. 

The US dollar depreciated noticeably in response to the data, while yields on ten-year US Treasuries likewise fell significantly. Silver also made considerable gains in gold's slipstream, effortlessly climbing above the $15 per troy ounce mark and continuing to trade at this level this morning.