Gold Prices Steady Ahead of Crucial US Payrolls Data
Gold prices held steady on Friday ahead of key US payrolls data, which is expected to provide clues on the Federal Reserve's next interest rate decision. Spot gold remained unchanged at $4,469.26 per ounce, while U.S. gold futures for December delivery fell 0.5% to $4,515.70.
Traders are pricing in an about 50% chance of a Fed rate hike later this month, according to the CME FedWatch Tool. The US nonfarm payrolls report is due at 1230 GMT, and weak figures could weaken the case for a rate hike, potentially benefiting gold.
Ross Maxwell, global strategy operations lead at VT Markets, said that 'weak figures and a rise in unemployment could weaken the case for a rate hike. In this case, gold could recover.' However, he also noted that central bank demand is supporting gold prices, limiting potential declines.