Gold Holds Steady Ahead of US Jobs Data

4 Dec 2024 , 11:14 AM

As investors awaited additional jobs data and remarks from Federal Reserve Chair Jerome Powell to provide additional clarity on the U.S. rate outlook, gold prices remained stable on Wednesday.

Spot gold remained stable at $2,640.42 an ounce. At $2,662.50, U.S. gold futures fell 0.2%.

Powell’s speech later in the day and the forthcoming ADP jobs report, which is due at 1315 GMT, are currently the focus of traders’ attention. This occurs prior to Friday’s much-awaited U.S. payrolls data.

According to data released on Tuesday, layoffs decreased in October while job vacancies in the United States grew somewhat.

The markets presently estimate a 73% possibility of a 25 basis point cut by the Fed this month, according to the CME Group’s FedWatch Tool.

The allure of holding the non-yielding asset is increased by lower rates.

At their next rate-setting meeting in two weeks, U.S. central bankers indicated support for future interest rate decreases, but none made a strong case for or against them. Since President-elect Donald Trump won the U.S. election last month, officials have been cautious about providing too much indication about how policy is expected to change.

On the geopolitical front, South Korean President Yoon Suk Yeol backed down in a standoff with parliament, which overwhelmingly rejected his attempt to restrict the media and ban political activity, and announced he would rescind the unexpected martial law designation he had imposed just hours before.

For feedback and suggestions, write to us at [e-mail]