Gold Steady Ahead of US Data
Gold steadied after a three-day gain as traders awaited the release of U.S. payrolls figures that will help shape the Federal Reserve’s policy outlook for this year.
Bullion for immediate delivery traded near $2,670 an ounce, set for a gain of more than 1% in the first full trading week of the year.
December payrolls data is expected to show modest but still healthy job growth that economists expect will continue into 2025. Fed officials have signaled that they are likely to keep interest rates at current levels for an extended period, only cutting again when inflation cools significantly. Lower interest rates tend to benefit non-yielding metals.
Gold was one of the strongest-performing major commodities last year, gaining 27% and setting back-to-back records as the Fed cut rates, central banks increased their holdings and investors sought shelter from geopolitical tensions. With U.S. President-elect Donald Trump set to take office on Jan. 20, investors are also weighing the possibility of a trade war or other tensions that could disrupt markets and boost demand for safe-haven assets. Bullion’s gains this week came despite a stronger U.S. dollar and Treasury yields, both of which can act as drags.
With traders scaling back expectations for a Fed rate cut in the first half, the greenback gauge is set for a sixth weekly gain. Ten-year yields, meanwhile, are trading near their highest since April. Spot gold was little changed at $2,669.98 an ounce at 8:34 a.m. in Singapore, while silver traded above $30 an ounce and headed for a second weekly gain. Palladium gained, and platinum eased slightly.
Source: Bloomberg
