Gold Prices Stabilize Near $4,500 Amid Hawkish Fed Bets
Gold prices have stabilized near $4,500 on Friday as investors await the US Nonfarm Payrolls (NFP) data for August. The US ADP Employment Change data for August was weaker than expected, showing a rise in private payrolls of just 38K, the slowest pace since February.
TD Securities expects a rebound to 95k in August NFP, but notes that risks to this forecast appear hawkish and could result in an outsized positive surprise. The bank also expects limited movement on the unemployment rate, which it sees as likely to remain at 4.1% with balanced risks.
Traders have trimmed their bets on a Fed interest rate hike after comments from Fed Governor Christopher Waller, who expressed confidence that inflation pressures are deflating and may support holding the policy rate steady in September.