Gold Prices Stabilize Ahead of US Jobs Data Release
Gold prices held steady on Friday ahead of the highly anticipated US jobs data release. Despite its stability, gold is still on track for a second consecutive weekly decline. The precious metal's value has been pressured by a stronger US dollar and higher Treasury yields.
The US dollar is poised to end the week with a gain, making greenback-priced metals more expensive for holders of other currencies. This has weighed on gold prices, which are down over 2% for the week so far. Spot gold was trading at $4,184.45 per ounce by 0419 GMT.
Market participants are closely watching US interest rate expectations and geopolitical developments in the Middle East. Kyle Rodda, senior financial market analyst at Capital.com, noted that 'US nonfarm payroll data will be critical for rate expectations.' A strong jobs report could increase the chances of rate hikes from the Federal Reserve, which would likely put downward pressure on gold prices.
The September US nonfarm payrolls report is due to be released at 1230 GMT. Data earlier in the week showed that US inflation increased less than expected in August, and price pressures were more moderate in the prior month than previously reported. Despite this, traders are pricing in only a 28% chance of a rate hike this month.