Gold holds steady with US jobs data on radar
GLD•Spot gold was flat at $4,155.65 an ounce on Thursday as markets awaited Friday’s US nonfarm payrolls report. Gold fell more than 6% in September.
1. Prices hold steady
Spot gold steadied at $4,155.65 per ounce as of 0205 GMT, while US gold futures were flat at $4,185.40. The September nonfarm payrolls report was scheduled for release on Friday.
2. Inflation and rates
US inflation rose less than expected in August, briefly lifting gold before prices closed lower. The data trimmed expectations for an October Federal Reserve rate hike, while traders saw an 87% chance of a December rate increase. Higher interest rates reduce gold’s appeal because it yields no interest.
3. Market outlook
Ilya Spivak of Tastylive said the inflation data gave gold some lift, but the move faded as Treasury yields continued rising. TD Securities’ Bart Melek said September’s losses were unlikely to be recovered, but added there were reasons to believe the correction’s worst was over for now and a case for higher prices.
