GOLD prices held steady on Wednesday (Sep 4) as investors braced for a monthly US payrolls report that could influence the size of a likely interest rate cut this month.
Spot gold held its ground at US$2,493.62 per ounce, as at 0025 GMT. US gold futures edged 0.1 per cent higher to US$2,524.90.
The US non-farm payrolls report is due on Friday. Economists polled by Reuters are looking for a 160,000 increase in US non-farm payrolls in August and a dip in the unemployment rate to 4.2 per cent.
Traders see a 38 per cent chance of a 50-basis-point (bp) cut by the US Federal Reserve on Sep 18 and a 62 per cent chance of a 25 bp cut, according to the CME Group’s FedWatch Tool.
Data on Tuesday showed that US manufacturing contracted at a moderate pace in August amid some improvement in employment, but a further decline in new orders and rise in inventory suggested factory activity could remain subdued for a while.
Fed chair Jerome Powell last month said “the time has come” to reduce borrowing costs, given that price pressures have eased considerably and the labour market has cooled.
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A low interest rate environment tends to boost non-yielding bullion’s appeal.
Market will also keep a tab on US job openings data later in the day, along with ADP employment report and jobless claims print on Thursday.
Bullion is heading for its best year since 2020, driven by investor optimism about upcoming US rate cuts and lingering concerns about the Middle East conflict.
Israeli forces killed at least 35 Palestinians across Gaza on Tuesday as they battled Hamas-led militants, Palestinian officials said.
Spot silver was flat at US$28.04 per ounce, platinum gained 0.4 per cent to US$906.55 and palladium added 0.6 per cent to US$943.60. REUTERS
