Gold Prices Hold Steady Ahead of Crucial US Jobs Report

Gold prices steadied near $4,477 an ounce on Friday as investors awaited US payrolls data that could impact expectations for the Federal Reserve's September meeting.

The metal gained about 2% on Thursday after Fed Governor Christopher Waller signaled support for keeping rates unchanged if incoming inflation data continued to show progress.

Friday's jobs report is a crucial test for gold, with the market becoming increasingly sensitive to small shifts in rate expectations. According to CME data, Fed funds futures imply roughly a 50% chance of a September rate increase, down from about 63% before Waller's remarks.

Waller stated that inflation was still above the Fed's 2% target but recent data suggested the disinflation process may be resuming. He indicated that continued progress would favor keeping policy unchanged, while a hotter inflation reading could justify tighter policy.