Gold Stalls Amid Investor Focus on U.S. Jobs Data

5 Sep 2024 , 09:30 AM

Gold prices were little changed on Thursday as investors avoided making huge wagers ahead of US payrolls data, which could provide more hints about the amount of an expected rate decrease this month.

Spot gold remained constant at $2,494.54 per ounce. US gold futures were barely changed at $2,524.50.

Non-yielding bullion does well when interest rates are low. It is also regarded as a safeguard against economic and political instability.

Data released overnight indicated that U.S. job vacancies fell to a three-and-a-half-year low in July, indicating that the labour market was losing pace, although the decrease alone is unlikely to support a half-percentage-point rate cut by the Fed this month.

Traders increased the odds of a 50-basis-point rate decrease at the Fed’s September 17-18 meeting to 44% from 38%, according to the CME FedWatch Tool. The nonfarm payrolls report due on Friday is critical to Fed expectations.

The ADP employment report, a reading on the US services industry, and unemployment claims data due later in the day are all on the radar.

Atlanta Fed President Raphael Bostic warned Wednesday that the US central bank should not keep interest rates too high for too long or risk harming employment.

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