Gold Stays Steady as Traders Eye Payrolls Data for Rate Hike Clues

Gold prices remained stable on Friday ahead of the highly anticipated US payrolls data release. The metal, which had surged 2% on Thursday after Fed Governor Christopher Waller hinted at a possible interest rate freeze, held its ground at $4,469.26 per ounce as of 0633 GMT.

Traders are pricing in an approximately 50% chance of a Federal Reserve rate hike later this month, according to the CME FedWatch Tool. However, weak payrolls figures and rising unemployment could weaken the case for a rate increase, potentially benefiting gold.

Ross Maxwell, global strategy operations lead at VT Markets, noted that 'weak figures and a rise in unemployment could weaken the case for a rate hike. In this case, gold could recover.' Nevertheless, the metal may remain exposed to changing sentiment due to upcoming inflation data releases.