NEW YORK: Gold prices steadied on Thursday as investors held back from placing big bets ahead of US non-farm payrolls data that could influence the Federal Reserve’s interest rate trajectory as markets awaited this year’s final policy-setting meeting.
Spot gold held its ground at $2,649.69 per ounce, as of 1221 GMT. US gold futures also eased 0.1% to $2,673.30. The market’s focus is on initial jobless claims due later in the day and the US non-farm payrolls (NFP) report on Friday, with the payrolls likely increasing by 200,000 jobs in the month after rising by only 12,000 in October.
A robust NFP number is more or less priced in, and if we see weakness in the report, it could add some support to gold prices as the market is kind of pricing in that the US economy is doing quite well, said Ole Hansen, head of commodity strategy at Saxo Bank.
Gold market is seeing “a relatively tight range. It does indicate the market is lacking a bit of oxygen, lacking a bit of directional input,” Hansen said.
Fed Chair Jerome Powell said on Wednesday that the US economy is stronger than expected and suggested a more cautious stance towards interest rate cuts. Traders are pricing in a 74% chance of a 25-basis-point cut at the Fed’s Dec. 17-18 meeting, according to the CME Group’s FedWatch Tool.
Source: Brecorder
