Gold prices rose on Thursday, as signs of a cooling US labour market supported bets of an interest rate cut early next year, while traders also awaited key jobs print due later in the day that could offer clues on the Federal Reserve’s trajectory.
Fundamentals
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Spot gold was up 0.1% at $2,027.12 per ounce by 0159 GMT.
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US gold futures fell 0.2% to $2,044.10.
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The dollar index dipped 0.1% against a basket of currencies, making gold less expensive for other currency holders.
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Yields on 10-year Treasury notes hovered near a three-month low.
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US job openings fell to a 2-1/2-year low in October, and US private payrolls increased less than expected last month, signalling a gradual cooling of the labor market.
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Other data on Wednesday showed that US unit labor costs were much weaker than initially thought in the third quarter amid robust worker productivity.
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Lower interest rates tend to support non-interest-bearing bullion.
Gold declines as Powell’s speech moves into spotlight
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Investors now await key US non-farm payrolls data on Friday, which could help further gauge the rate outlook, ahead of the Fed’s updated economic and interest rate projections at their Dec. 12-13 policy meeting.
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Traders are pricing in about a 60% chance of a rate cut by March next year, CME’s FedWatch Tool shows.
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The Bank of Canada on Wednesday held its key overnight rate at 5% and left the door open to another hike.
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Spot silver fell 0.4% to $23.79 per ounce, while platinum dropped 0.3% to $887.40 and palladium edged 0.1% lower to $942.40 per ounce.
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