Gold Prices Rise Ahead of US Employment Report
Gold prices rose in European trading on Friday, extending their move into positive territory for a second consecutive day. The metal gained 0.45% to $4,196.95, from its opening level of $4,177.69, after recording a low of $4,133.85.
The increase was supported by a pause in the rally in the US dollar and Treasury yields ahead of the release of the US employment report for September. The data are expected to provide crucial clues about the likelihood of the Federal Reserve raising interest rates in October.
According to the CME FedWatch Tool, the probability of the Federal Reserve leaving interest rates unchanged at its October meeting currently stands at 73%, while the probability of a 25-basis-point rate hike stands at 27%. The release of the US employment report later today will reassess those expectations.
Markets are awaiting the monthly US employment report, which will include key labor market indicators, particularly nonfarm payrolls for September. The nonfarm payrolls report is due at 12:30 GMT, with expectations that the US economy added 89,000 jobs in September, compared with a loss of 162,000 jobs in August.