Gold rises after biggest daily gain since August, with US payrolls in focus
GLD•Spot gold rose 0.6% to $4,082.76 an ounce after gaining about 3.4% in the previous session, as investors awaited Friday’s US nonfarm payrolls report for clues on the Federal Reserve’s policy outlook.
1. Gold prices rise
Spot gold was up 0.6% at $4,082.76 per ounce by 0036 GMT, after climbing about 3.4% in the previous session. US December gold futures gained 0.5% to $4,092.90.
2. Payrolls in focus
Investors awaited Friday’s US nonfarm payrolls report after private payroll growth increased further in October, according to the ADP National Employment Report. Traders see an 83% chance the Federal Reserve will raise rates in December. Higher rates increase the opportunity cost of holding non-yielding bullion.
3. Other market factors
A weaker dollar supported gold by making the dollar-priced metal more affordable to holders of other currencies. Citi set a 0–3 month gold price target of $4,500 per ounce, citing potential upside if the Strait of Hormuz reopens and the Yemen-Saudi conflict de-escalates by year-end, as it expects.
