Gold Holds Steady Ahead of US Payroll Data

4 Sep 2024 , 10:02 AM

Gold prices remained stable on Wednesday as investors awaited the monthly U.S. payrolls report, which could impact the amount of a possible interest rate decrease this month.

Spot gold remained unchanged at $2,493.62 per ounce. U.S. gold futures ticked up 0.1% to $2,524.90.

The United States’ nonfarm payrolls report is due on Friday. According to Reuters polled economists, non-farm payrolls in the United States are expected to rise by 160,000 in August, with the unemployment rate falling to 4.2%.

According to the CME Group’s FedWatch Tool, traders estimate a 38% possibility of the US Federal Reserve cutting interest rates by 50 basis points (bp) on September 18 and a 62% chance of a 25-bp drop.

Data released on Tuesday revealed that U.S. manufacturing dropped at a mild rate in August despite some recovery in employment, but a further decline in new orders and an increase in inventory signalled that factory activity could stay weak for some time.

Fed Chair Jerome Powell stated last month that “the time has come” to lower borrowing costs, noting that price pressures have eased significantly and the labour market has cooled.

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