Gold little changed; investors await US payrolls data

GOLD prices were little changed on Thursday (Dec 5) as investors awaited US payrolls data, due on Friday, for more cues on the Federal Reserve’s monetary policy path.

Spot gold was flat at US$2,648.89 per ounce, as at 0027 GMT. US gold futures eased 0.1 per cent to US$2,672.60.

The US payroll report on Friday will be followed next week by inflation data for November.

According to the CME Group’s FedWatch Tool, markets currently see a 79.3 per cent chance of a 25-basis-points rate cut this month and 85 bps cut by the end of 2025.

Fed chair Jerome Powell on Wednesday said the economy is stronger than the central bank had expected in September, when it began trimming rates, and appeared to signal his support for a slower pace of cuts going forth.

Richmond Federal Reserve Bank president Thomas Barkin said he believed inflation and employment are headed in the right direction, but flagged risks for both.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

“There’s no sense of urgency” on cutting rates, San Francisco Fed Bank president Mary Daly said.

Higher rates dull non-yielding bullion’s appeal.

US private payrolls grew at a moderate pace in November, the ADP National Employment Report showed. US services sector activity slowed in November after big gains in recent months, but remained above levels consistent with solid economic growth in the fourth quarter.

Spot silver fell 0.1 per cent to US$31.31 per ounce, platinum dropped 0.2 per cent to US$939.07 and palladium shed 0.3 per cent to US$975.48. REUTERS

Share with us your feedback on BT's products and services