U.S. payrolls report due on Friday
Powell says Fed can afford to be a little more cautious
Dec 5 – Gold prices were subdued on Thursday as investors remained cautious ahead of U.S. payrolls data that could provide more insights into the Federal Reserve’s monetary policy path.
Spot gold edged 0.1% lower at $2,648.02 per ounce by 0726 GMT. U.S. gold futures also eased 0.1% to $2,672.90.
“As of now, prices have got good support near $2,600. We are bullish on gold due to geopolitical scenarios, de-dollarisation, and central bank buying, and expect prices to test around $3,000 by March 2025,” said Ajay Kedia, director at Kedia Commodities, Mumbai.
Gold is considered a hedge against geopolitical turmoil and inflation, but higher rates reduce the appeal of holding the non-yielding asset.
Fed Chair Jerome Powell said on Wednesday the U.S. economy is stronger than the central bank had expected in September when it began trimming rates and appeared to signal his support for a slower pace of cuts in the future.
“There’s no sense of urgency” on cutting rates, San Francisco Fed Bank President Mary Daly said.
Traders’ attention is likely to shift to the U.S. payrolls report on Friday, followed by inflation data for November expected next week. Markets currently see a 74% chance of a 25-basis-point rate cut this month, according to the CME Group’s FedWatch Tool.
“After outperforming this year, gold prices are likely to take a breather in the short term … Recent dollar strength is likely to continue, and this will be another headwind for gold demand,” ANZ said in a note.
“Silver prices will struggle to move higher amid consolidating gold prices in the short-term.”
Spot silver steadied at $31.28 per ounce.
Elsewhere, Perth Mint’s gold and silver sales nearly doubled in November, compared with the previous month.
Platinum shed 0.2% to $943.14 and palladium edged 0.1% higher to $978.58.
This article was generated from an automated news agency feed without modifications to text.