Gold holds steady as traders wait for key US economic data

GOLD prices steadied on Friday as market focus shifted to a crucial US payrolls report for better clarity into the extent of an expected rate cut this month.

Spot gold edged up by 0.1 per cent to US$2,746.30 per ounce, as of 0028 GMT. Bullion marked a monthly rise of 4.15 per cent in October and hit a record high of US$2,790.15 in the previous session.

US gold futures rose 0.3 per cent to US$2,756.20.

Data on Thursday showed US consumer spending increased slightly more than expected in September, putting the economy on a higher growth trajectory heading into the final quarter of the year.

Additionally, the number of Americans filing new applications for unemployment fell last week as distortions from recent hurricanes faded.

Attention now turns to closely watched nonfarm payrolls report due later in the day and the US presidential election on Tuesday, which has entered its final stretch — with opinion polls too close to call a winner.

With inflation slightly above the Federal Reserve’s 2 per cent target and easing wage pressures, US central bankers are anticipated to lower short-term borrowing costs next week to support the labor market.

Traders anticipate nearly a 94 per cent chance of a quarter-basis-point Fed rate cut next week, the CME FedWatch tool showed.

SPDR Gold Trust, the world’s largest gold-backed ETF, said its holdings fell 0.10 per cent to 891.79 tonnes on Thursday.

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Spot silver rose 0.2 per cent to US$32.71 per ounce, platinum gained 0.5 per cent to US$992.17 and palladium added 0.9 per cent to US$1,115.66. REUTERS