Gold subdued as dollar firms; spotlight on Fed minutes, US jobs data

Gold edged lower on Wednesday due to a stronger dollar, while investors awaited minutes from the Federal Reserve’s latest policy meeting and U.S. jobs report that could shed more light on the central bank’s interest rate trajectory.

Spot gold was down 0.2% at $4,059 per ounce, as of 0201 GMT. U.S. gold futures for December delivery edged 0.1% lower to $4,061.60 per ounce.

“Gold has somewhat had its momentum thwarted by the stronger USD and doubts about when the next Fed rate cut may arrive,” said KCM Trade Chief Market Analyst Tim Waterer.

“However a bout of risk aversion in the market has kept gold in the frame for investors as a safety play, which has limited the slide.”

The dollar was up 0.1% against its rivals. A stronger dollar makes gold more expensive for other currency holders.

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.

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 U.S. government shutdown.

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

Data showed on Tuesday that the number of Americans receiving unemployment benefits stood at a two-month high in mid-October.

Last month, the U.S. 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.

Traders now see nearly a 49% chance for a rate cut at the Fed’s December 9-10 meeting, 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.

Elsewhere, spot silver was flat at $50.70 per ounce, platinum fell 0.5% to $1,527.63, and palladium slipped 0.3% to $1,396.68.