Gold gains as attention turns to US payrolls data
Gold prices edged higher on Tuesday on optimism that the U.S. Federal Reserve will cut interest rates this month as attention shifted to upcoming jobs data which could provide more insights into the size of rate cuts.
Spot gold rose about 0.2% to $2,504.02 per ounce by 0928 GMT, having hit more than one-week low in the last session on a firmer dollar. U.S. gold futures rose 0.3% to $2,535.90.
The (gold) market is torn a little bit between the debate in the U.S. on "how strong is the Fed going to cut (interest rates)in September and in the following two meetings," said Quantitative Commodity Research analyst Peter Fertig.
Traders currently see a 31% chance of a 50 basis point rate cut at the Fed's Sept. 17-18 policy meet and a 69% chance of a quarter point cut.
Investor's focus has now shifted to Friday's U.S. payrolls report in particular as ISM surveys, JOLTS job openings and ADP employment report are also on traders' radar for clues on the Fed's rate cut path.
"The labor market seemed to be now concerned a little bit more about the unemployment rate after it had risen strongly in the last two months. Whether this has also been the case for August, that is the crucial question," Fertig added.
Bullion has gained 21% so far this year, breaking successive records and hitting a historic high of $2,531.60 per ounce on Aug. 20.
Spot silver dipped 0.5% to $28.36, platinum fell about 1% to $921.10 and palladium lost 1.2% to $967.00.
Source: Reuters
