Gold Waits for US Payrolls Data as Rate Hike Odds Weigh

Gold prices held steady on Friday ahead of highly anticipated US payrolls data, which could influence the Federal Reserve's decision on interest rates. Spot gold remained at $4,477.10 per ounce as of 0211 GMT, while US gold futures for December delivery fell 0.4% to $4,522.60.

Despite the stability in gold prices, traders are pricing in a 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 could provide crucial information on labor market conditions, which may impact inflation expectations.

Ross Maxwell, global strategy operations lead at VT Markets, noted that weak figures or a rise in unemployment could weaken the case for a rate hike, potentially leading to a recovery in gold prices. However, elevated interest rates tend to weigh on non-yielding assets like gold, and central bank demand may limit any decline.