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

Gold traded close to flat on Monday, with spot bullion down 0.18% at $4,132.22 an ounce, according to Mettis Global. Weaker American employment figures released Friday cut bets on a Federal Reserve rate increase this month, making the non-yielding metal more appealing. Hiring in September came in below forecasts, and earlier months were revised sharply downward, CNBC reported.

The CME FedWatch Tool now puts the chance of an October Fed hike at 22%, down from 64% a week earlier, while a December increase is still seen at 87%. Silver rose 1.7% to $61.40 an ounce, while platinum gained 0.6% to $1,708.48 and palladium edged up 0.6% to $1,175.04.

Yemen's Saudi-backed government announced on Sunday a large military push to reclaim all areas held by the Iran-backed Houthis. Oil fell, as heavier Middle Eastern crude flows and a G7 stock release outweighed fears over further harm to Gulf energy facilities amid the Iran war.