(Bloomberg) -- Gold held steady as traders weighed simmering Middle East tensions against a stronger-than-expected US jobs report that doused hopes for aggressive rate cuts by the Federal Reserve this year.
Bullion traded near $2,650 an ounce after closing little changed on Friday. The Middle East remains on edge, with Israel sending troops back into northern Gaza over the weekend and the market watching for a response to Iran’s missile attack last week, driving demand for haven assets such as gold.
Traders are also assessing the outlook for interest rates after Friday’s US hiring report topped all estimates, causing markets to slash bets on the chance of a half-point rate cut in November. Lower rates tend to benefit the precious metal, as it does not pay interest.
Gold has rallied almost 30% this year — hitting a series of record highs in the process — with recent gains fueled by rate-cut optimism. The metal has also been boosted by robust central-bank purchases and haven demand.
Spot gold was down 0.1% to $2,651.57 an ounce as of 7:29 a.m. in Singapore, below its all-time high of $2,685.58 reached in September. The Bloomberg Dollar Spot Index was steady. Silver edged up, palladium rose and platinum was flat.
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