Gold Prices Stabilize Ahead of US Jobs Data and Fed Rate Hike Bets

Gold prices steadied near $4,477 an ounce on Friday as investors awaited the US jobs data that could impact expectations for the Federal Reserve's September meeting. The metal had jumped about 2% on Thursday after Fed Governor Christopher Waller signaled he might support keeping rates unchanged if inflation data continued to show progress.

The market has become sensitive to small shifts in rate expectations, with the September rate hike bets now at around a 50% chance, down from 63% before Waller's remarks. Economists expect nonfarm payrolls to rise by around 56,000 in August, while unemployment is forecast to remain at 4.1%.

Waller said 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.