Gold Holds Ahead of US Data, Rate Path
Gold steadied after a two-day advance as traders weighed the outlook for the Federal Reserve’s easing path ahead of key jobs figures due later this week.
Bullion was trading near $2,660 an ounce, after rising 0.5% on Wednesday as a report showed U.S. private-sector hiring and wage growth slowed in December. The Fed will need to balance that with renewed inflation fears when deciding whether to cut interest rates, with the central bank’s meeting minutes last month reiterating a more cautious approach to easing.
Lower borrowing costs are usually positive for gold, which carries no interest. Traders now turn their attention to Friday’s payrolls data for December, which is expected to show modest but still healthy job growth that economists expect to continue into 2025. A survey by 22V Research showed most investors were watching the report more closely than usual.
Bullion surged 27% last year at a record high, fueled in part by U.S. monetary easing, though the rally lost momentum after Trump’s U.S. election victory buoyed the dollar. Bulls now face the prospect of less impressive gains this year, with Goldman Sachs Group Inc. this week pushing back its target for gold to reach $3,000 an ounce by mid-2026 on expectations for fewer Fed cuts.
Spot gold fell 0.1% to $2,660.57 an ounce as of 8:14 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver and palladium were steady, while platinum edged down.
Source: Bloomberg
