Gold Holds Ground Ahead of US Jobs Report Amid Rate Hike Uncertainty

Gold prices remain steady near $4,477 an ounce as investors await US payrolls data that could impact expectations for a September rate hike. The market has become sensitive to small shifts in rate expectations, with Fed funds futures implying a roughly 50% chance of a rate increase.

Fed Governor Christopher Waller signalled he could support keeping rates unchanged if incoming inflation data continues to show progress. Economists expect nonfarm payrolls to rise by around 56,000 in August, while unemployment is forecast to remain at 4.1%.

A weaker-than-expected payrolls report could support gold by reducing the likelihood of another rate increase. Saxo Bank head of commodity strategy Ole Hansen noted that gold remains highly sensitive to changes in expectations for the September Fed meeting because policymakers are offering little firm forward guidance.