Gold steady as focus turns to Fed minutes, US jobs report

Gold prices were steady on Wednesday (Nov 19), as investors awaited minutes from the US Federal Reserve’s latest policy meeting and US jobs report that could shed more light on the central bank’s interest rate trajectory.

Spot gold was flat at US$4,069.44 per ounce, as at 9.20 am. US gold futures for December delivery edged 0.1 per cent higher to US$4,069.50 per ounce.

The US dollar held gains against the yen after reaching a 9½-month high. A stronger US dollar makes gold more expensive for other currency holders.

Data showed on Tuesday that the number of Americans receiving unemployment benefits stood at a two-month high in mid-October, with continued claims for jobless benefits rising to 1.9 million in the week ended Oct 18.

Traders now see nearly a 49 per cent chance for a rate cut at the Fed’s Dec 9 to 10 meeting, up from 46 per cent on Tuesday, but lower than the 67 per cent seen last week, CME Group’s FedWatch tool showed.

Non-yielding gold tends to do well in a low-interest-rate environment and during times of economic uncertainties.

Investors now await minutes from the Fed’s latest meeting, due to be released later in the day, and the September non-farm payrolls report, which will be released on Thursday after being delayed due to the recent US government shutdown.

Economists polled by Reuters expect the report will show that employers added 50,000 jobs during the month.

Last month, the US Fed lowered interest rates by 25 basis points, but chair Jerome Powell signalled caution over another rate cut this year, in part due to the lack of data.

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Global equity markets have turned sharply negative this week, with the S&P 500 on a four-day losing streak on concerns about valuations of AI stocks and US equity futures extending losses in Asian trading on Wednesday.

Elsewhere, spot silver was flat at US$50.70 per ounce, platinum fell 0.3 per cent to US$1,529.90, and palladium slipped 0.5 per cent to US$1,393.75. REUTERS

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