As markets anticipated this year’s final policy-setting meeting, gold prices marginally declined Thursday as investors refrained from making large wagers ahead of US non-farm payroll data that could affect the Federal Reserve’s interest rate trajectory.
As of 10:30 GMT, spot gold was down 0.1% at $2,648.69 an ounce. Further, US gold futures fell 0.1% to $2,672.40.
The market’s primary concerns are the US non-farm payrolls (NFP) data, which is predicted to grow by 200,000 jobs this month after only increasing by 12,000 in October, and first unemployment claims, which are coming later today.
A good NFP result is basically priced in, according to Ole Hansen, head of commodity strategy at Saxo Bank. If the report reveals any weakness, it would give gold prices some further support.
Hansen also added
“I think for now we’re approaching the year-end. Big decisions are not being made at this point in time. So, it’s mostly intraday stuff and perhaps some profit-taking emerging ahead of year-end,”.
The US economy is stronger than anticipated, according to Fed Chair Jerome Powell, who also indicated a more cautious approach to interest rate decreases on Wednesday.
The CME Group’s FedWatch Tool indicates that traders are pricing in a 74 percent possibility of a 25 basis point drop at the Fed’s meeting on December 17–18. Bullion, which has no interest payments, has a history of doing well when interest rates are low.
Zain Vawda, a market analyst said
“Gold prices could see a short-term rise toward $2,700 per ounce, driven by seasonal weakness in the US dollar, which historically underperforms in December. However, a deeper correction in gold prices remains possible over the medium term,”.
The price of spot silver increased by 0.3% to $31.37 an ounce. Palladium climbed 0.5% to $982.39 and platinum increased 0.5% to $945.42. For news & daily updates you can also follow allbusinessinsider.
