Gold Steady at $2,640 Area
Gold held above $2,640 an ounce on Wednesday as markets continued to assess the political and monetary outlook, while closely monitoring key economic data releases.
A recent report showed that U.S. job openings were higher than expected, indicating continued resilience in the labor market.
Investors now look ahead to Friday’s anticipated nonfarm payrolls report, along with additional speeches from several Fed officials to gauge the central bank’s potential policy moves this month.
The odds for a 25bps rate cut in the federal funds rate currently stand at 73%, which benefits gold by reducing the opportunity cost of holding the non-interest-bearing asset.
Meanwhile, the metal remains supported by its safe-haven appeal amid political uncertainty in South Korea and France, as well as ongoing geopolitical tensions in the Middle East and the Russia-Ukraine war.
Source: Trading Economics