Gold prices held steady on Friday, but were on track for a weekly gain, as the market focused on a critical U.S. payrolls report for further clarity on the size of an expected rate cut this month.
Spot gold held steady at $2,516.19 per ounce, having set a nearly one-week high the previous session. Bullion is up 0.5% this week.
US gold futures nudged up 0.1% to $2,546.00.
Bullion, which does not provide yields, typically performs better when interest rates are low.
Bets on a 50-basis-point (bp) decrease by the US Federal Reserve have increased to 41% from 34% a week ago, but traders still estimate a 59% chance that the reduction will be only 25 bps, according to CME Group’s FedWatch tool.
The US nonfarm payrolls report is due at 1230 GMT. Later in the day, Federal Reserve Board Governor Christopher Waller and Federal Reserve Bank of New York President John Williams will also speak.
Data released on Thursday indicated that private firms in the United States hired the fewest number of workers in three and a half years in August, perhaps indicating a steep labour market slowdown. The number of Americans filing new claims for unemployment benefits decreased last week.
For feedback and suggestions, write to us at editorial@iifl.com