Gold Prices Stabilize Ahead of Crucial US Jobs Report
Gold prices remained relatively stable on Friday but are still on track for their second consecutive weekly decline. The firmer US dollar and rising Treasury yields have put downward pressure on gold, despite investors' anticipation of key US payrolls data that could influence the Federal Reserve's policy decisions.
The September US nonfarm payroll report is set to be released at 1230 GMT, and market participants are closely watching its impact on interest rate expectations. According to Kyle Rodda, senior financial market analyst at Capital.com, a strong jobs report may increase the chances of rate hikes from the Fed, which could further weigh on gold prices.
Two Federal Reserve policymakers have recently emphasized the need for more data before considering another rate hike. Meanwhile, traders are currently pricing in only about a 28% chance of a rate hike this month, down from around 70% earlier in the week. They still anticipate an 82% chance of a rate increase in December.
Higher borrowing costs typically diminish gold's attractiveness due to its lack of interest payments. Spot gold was little changed at $4,184.45 per ounce by 0419 GMT, while US gold futures rose 0.3% to $4,214.70. Other precious metals, including silver, platinum, and palladium, also experienced losses for the week.