Gold Rises Ahead of US Data, Rate Path
Gold rose for a third day as traders weighed the outlook for the Federal Reserve’s easing path, ahead of key jobs figures due later Friday.
Bullion traded near $2,670 an ounce — hitting its highest level since mid-December but showing limited movement with some US financial markets closed on Thursday. Recent data showed US 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 minutes from its meeting last month reiterating a more cautious approach to easing. Lower borrowing costs are usually positive for gold, which carries no interest.
Market participants 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 U.S. President Donald Trump’s election victory buoyed the dollar. Bulls now face the prospect of less impressive gains this year, with Goldman Sachs Group Inc. pushing back its $3,000 target to mid-2026 on expectations for fewer Fed cuts.
Spot gold rose 0.2% to settle at $2,667.25 an ounce at 5 p.m. in New York. The Bloomberg Dollar Spot Index rose 0.1%. Platinum and palladium were steady, while silver edged higher.
Source: Bloomberg
