Gold Steadies Ahead of US Jobs Data That May Shape Fed Rate Path
Gold held above $2,500 an ounce, with traders preparing for US labor data later this week which may give clues on the scale and pace of the Federal Reserve's looming interest-rate cuts.
Bullion was little changed in early Asia trading after closing 0.7% lower on Friday, after a key US inflation gauge reinforced bets that the central bank's pace for rate cuts will be measured. The next indicator of the strength of the economy will come Thursday with an initial jobless claims report, followed the next day by non-farm payrolls. Any signs of labor-sector weakening will likely support a more dramatic pivot to monetary easing.
Bullion has surged more than 20% this year, supported by growing optimism that the Fed will start cutting rates from this month. Lower borrowing costs typically benefit the precious metal, which doesn't pay interest. Robust over-the-counter purchases and strong haven demand due to conflicts in the Middle East and Ukraine also helped the advance.
Spot gold was flat at $2,503.02 at 8:12 a.m. in Singapore, after peaking at a record high of $2,531.75 in August. The metal posted consecutive monthly gains. The Bloomberg Dollar Spot Index was little changed. Silver and palladium edged higher, while platinum slipped.
Source : Bloomberg
