Gold meanders as investors focus on US jobs data

GOLD prices were largely flat in early Asian hours on Friday (Nov 3), as investors looked forward to the US October non-farm payrolls report later in the day for more clues on the Federal Reserve’s interest rate path.

Spot gold was almost flat at US$1,985.09 per ounce by 0112 GMT and US gold futures were little changed at US$1,992.40.

Bullion has declined 1 per cent so far in the week after three consecutive weekly gains. Prices rose above the key US$2,000-per-ounce level last week on safe-haven demand amid growing unrest in the Middle East.

In line with market expectations, the Fed held rates steady on Wednesday. Investors stepped up bets that the US central bank may be done with rate hikes, sending the US dollar and Treasury yields lower on Thursday.

Market focus now shifts to US non-farm payrolls data, due at 1230 GMT, which is expected to show that employers added 180,000 jobs last month.

Data on Thursday showed the number of Americans filing new claims for unemployment benefits increased moderately last week.

Meanwhile, data showed US private payrolls increased less than expected in October, while the September JOLTS job openings were at 9.55 million against expectations of 9.25 million.

Markets are pricing in around an 80 per cent chance that the Fed will leave rates unchanged in December, according to the CME FedWatch tool.

Higher interest rates raise the opportunity cost of holding gold.

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Gold gains as US dollar, yields slip after Fed keeps rates steady

Spot silver slipped 0.3 per cent to US$22.68 per ounce, platinum rose 0.1 per cent to US$921.02 and palladium climbed 1.5 per cent to US$1,116.57. REUTERS