Gold Prices Hold Steady Ahead of US Jobs Data Release
Gold prices remained steady on Thursday as markets awaited key US jobs data to gauge the Federal Reserve's next policy move. The US nonfarm payrolls report for September is scheduled for release on Friday, which could have a significant impact on gold prices.
The US dollar held firm, supported by an extended rise in US Treasury yields, making dollar-priced metals costlier for holders of other currencies. Ilya Spivak, head of global macro at Tastylive, noted that the recent PCE data gave gold some lift but that move faded due to the relentless rise in yields.
Gold prices briefly climbed following the release of US inflation data on Wednesday, which showed price pressures were more moderate in August than previously reported. However, traders see an 87% chance of a December rate increase, and higher interest rates reduce gold's appeal as it yields no interest.
Bart Melek, global head of commodity strategy at TD Securities, believes that the worst of the correction is over for now and that there is a case for higher prices. Despite this, spot gold prices fell more than 6% in September and are unlikely to be recovered entirely.