Gold holds steady as traders brace for US payroll data
Shafaq News/ Gold prices held steady on Wednesday as investors braced for a monthly U.S. payrolls report that could influence how swiftly and deeply the Federal Reserve cuts interest rates this year.
Spot gold held its ground at $2,491.01 per ounce, as of 0624 GMT. U.S. gold futures steadied at $2,522.20.
Before the non-farm payrolls report on Friday, job openings data on Wednesday and the ADP employment and jobless claims reports on Thursday will be in focus.
Traders see a 41% chance of a 50-basis-point (bp) rate cut on Sept. 18 and a 59% chance of a 25-bp reduction, according to the CME Group's FedWatch Tool.
"If the jobs data is weak, it will increase the probability of a 50-bp cut and raise worries about growth slowdown, which will be supportive for gold," said Kyle Rodda, a financial market analyst at Capital.com.
"But from a technical viewpoint, positioning is a bit too long for gold and this might limit upside," said Rodda, adding that prices were likely to scale new highs in the longer run, even if there was a pullback in the short-term because of positioning.
Data on Tuesday showed that U.S. manufacturing contracted at a moderate pace in August amid some improvement in employment.
Bullion is considered a safe asset during political and economic uncertainty and tends to thrive in a low rate environment.
So far this year, gold has gained 21%, hitting an all-time high of $2,531.60 on Aug. 20.
Spot silver fell 0.4% to $27.93 per ounce.
Platinum gained 0.4% to $906.40 and palladium was flat at $938.75. The two metals are primarily used in engine exhausts to reduce emissions.
"In Germany, consumers turning away from BEVs (battery electric vehicles) has resulted in about 50,000 additional sales of catalyzed vehicles, which will help to improve palladium demand in the short term," analysts at Heraeus said in a note.
(Reuters)
