Gold steady as traders await US jobs data

Bengaluru — Gold prices were steady on Tuesday as investors took a cautious stance ahead of the upcoming US economic data that could provide insights into the Federal Reserve’s interest rate path.

Spot gold was hardly changed at $2,636.50/oz by 1.56am GMT, after falling as much as 1% on Monday. US gold futures was flat at $2,659.00.

The dollar drifted higher, making greenback-priced bullion more expensive for overseas buyers.

Key US data this week includes the job openings due later in the day, the ADP employment report on Wednesday, and the payrolls report on Friday.

“It seems we’re just oscillating in one place until a new trigger emerges.... Fed rate cut expectations are likely to define what comes next,” said Ilya Spivak, head of global macro at Tastylive.

“Another 25 basis point [bp] cut this month seems likely and appears mostly priced in. The big question concerns the scope for further easing in 2025.”

On Monday, Fed governor Christopher Waller said with inflation still forecast to fall to 2% he was inclined “at present” to support another rate cut later this month.

“I expect it will be appropriate to continue to move to a more neutral policy setting over time,” Fed Bank of New York president John Williams said.

The comments led investors to boost expectations for a rate cut at the Fed’s December 17-18 meeting to nearly 75%.

Gold tends to thrive in a low-interest-rate environment and during periods of geopolitical turmoil.

On the geopolitical front, the Israeli military targeted dozens of Hezbollah positions across Lebanon on Monday.

Elsewhere, spot silver added 0.1% to $30.51/oz, platinum dropped 0.3% to $944.35 and palladium shed 0.2% to $979.72.

Reuters