Gold Trades Sideways, Awaits US Payroll Report

5 Dec 2024 , 10:26 AM

As investors waited for additional clues on the Federal Reserve’s monetary policy course from the U.S. payrolls report, which is coming on Friday, gold prices saw little movement on Thursday.

Fed Chair Jerome Powell on Wednesday seemed to indicate that he supports a slower pace of rate cuts moving forward, stating that the economy is stronger than the central bank had anticipated when it started reducing rates in September.

Spot gold was steady at $2,648.89 an ounce. At $2,672.60, U.S. gold futures fell 0.1%.

Thomas Barkin, president of the Richmond Federal Reserve Bank, stated that he thinks both employment and inflation are moving in the correct direction, but he also pointed out threats for both.

According to Mary Daly, president of the San Francisco Fed Bank, “there is no sense of urgency” about lowering rates.

Next week, November inflation statistics will be released after Friday’s U.S. payroll report.

The markets presently estimate a 79.3% chance of a 25 basis point rate decrease this month and an 85 basis point cut by the end of 2025, according to the CME Group’s FedWatch Tool.

The appeal of non-yielding bullion is diminished by higher rates.

According to the ADP National Employment Report, private payrolls in the United States expanded somewhat in November. After significant increases in recent months, U.S. services sector activity fell in November but stayed above levels indicative of strong economic expansion in the fourth quarter.

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