Gold Holds Steady Ahead of US Payrolls Data
Gold prices held steady on Friday as traders waited for the release of US payrolls data, which could provide clues about the Federal Reserve's next interest rate decision. The spot price of gold remained at $4,475.75 per ounce.
The metal has been volatile in recent days, with a 2% jump on Thursday due to reduced expectations of a September rate hike following comments from Fed Governor Christopher Waller. However, traders are still pricing in about a 50% chance of a rate hike later this month, according to the CME FedWatch Tool.
Despite gold's reputation as an inflation hedge, high interest rates tend to weigh on non-yielding assets like gold. The US nonfarm payrolls report is due at 1230 GMT, and investors are closely watching the data for signs of inflation pressures moderating or rising.