Gold Holds Steady Ahead of US Jobs Report

4 Oct 2024 , 08:54 AM

Gold prices stayed flat on Thursday but were slightly lower for the week as market attention switched to a critical U.S. payrolls report for further clarity on the Federal Reserve’s expected interest rate cut next month.

Bullion is regarded as a safe investment during periods of political and financial turmoil, and it flourishes in a low-rate environment.

Furthermore, initial jobless claims data showed that the number of Americans filing new applications for unemployment benefits increased somewhat more than expected last week.

Spot gold rose to $2,662.13 per ounce. Bullion was on track for a flat week after three weeks of increases.

US gold futures down 0.1% to $2,676.70.

Data released on Thursday revealed that U.S. services sector activity increased to a 1-1/2-year high in September due to strong growth in new orders, but its measure of services employment declined, consistent with a slowing labour market.

Following the latest statistics, expectations for a 25-basis-point drop at the Fed’s November meeting rose slightly to 69%. Meanwhile, CME’s FedWatch tool indicates a 31% possibility of a 50-bp cut.

On Thursday, Israel’s military ordered inhabitants of more than 20 villages in south Lebanon to evacuate their homes immediately as it continued its cross-border invasion and struck Iran-backed Hezbollah targets in a Beirut neighbourhood.

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