Gold steady as markets await US jobs data
GOLD prices steadied on Wednesday (Dec 6), as the US dollar levelled with bets for an interest rate cut by the Federal Reserve in the first half of 2024, ahead of key US jobs data this week that could offer more clarity on the central bank’s rate path.
Spot gold edged up 0.1 per cent at US$2,020.39 per ounce by 0204 GMT, trading in a tight range of about US$5.
US gold futures for February delivery also rose 0.1 per cent to US$2,038.70.
Bullion had climbed to a record high of US$2,135.40 on Monday on elevated bets for a rate cut following Fed chair Jerome Powell’s comments last week, before dropping more than US$100 in a single day, as uncertainty over the timing of the monetary policy easing loomed.
The US dollar index fell 0.1 per cent against a basket of currencies, hovering near a two-week high, while yields on 10-year Treasury notes ticked up at 4.1858 per cent.
A stronger US dollar makes greenback-priced gold more expensive for other currency holders.
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US job openings fell to a more than two-and-a-half year low in October, signalling that higher rates were dampening demand for workers.
Traders are pricing in about a 60 per cent chance of a rate cut by March next year, CME’s FedWatch Tool shows.
Lower interest rates tend to support non-interest-bearing bullion.
Investors are awaiting US non-farm payrolls data on Friday, which could help further gauge the rate outlook.
Israel’s military assaulted southern Gaza’s main city in what it said was the fiercest combat since it began its ground invasion to eliminate Hamas five weeks ago, while the US again pressed Israel to minimise Palestinian civilian casualties.
Spot silver rose 0.3 per cent to US$24.21 per ounce, while platinum gained 0.2 per cent to US$900.57. Palladium rose 0.7 per cent to US$940.93 per ounce, hovering near a more than five-year low. REUTERS
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