NEW YORK: Gold prices rose on Tuesday as investors analyzed a US jobs report that showed the unemployment rate rose last month from September, reinforcing bets of rate cuts by the US Federal Reserve and sending the dollar index lower.
Spot gold gained 0.4percent to USD4,316.67 per ounce, as of 09:07 a.m. ET (14:07 GMT). US gold futures were up 0.3percent at USD4,347.10. The US dollar fell to a two-month low, making greenback-priced bullion more affordable for overseas buyers. Benchmark 10-year US Treasury yields also edged lower.
US job growth rebounded in November after nonfarm payrolls declined in October, but the unemployment rate was at 4.6 percent in the backdrop of economic uncertainty stemming from President Donald Trump’s aggressive trade policy. A Reuters survey of economists had estimated an unemployment rate of 4.4 percent.
“(The) data gives the Fed more reason to cut rates and if they cut rates, that’s bullish for gold … that’s the way the market’s interpreting it right now,” said RJO Futures senior market strategist Bob Haberkorn.
Last week, the Federal Open Market Committee had announced a quarter-point rate cut, and Chair Jerome Powell’s accompanying comments were perceived as less hawkish than expected. Chances of a January rate cut went up to 26.6 percent after the data, from 24.4 percent earlier, according to CME’s FedWatch tool.
US rate futures still expect two cuts of 25 basis points each in 2026, pricing in 59 bps of easing next year. Non-yielding gold tends to thrive in a low-interest rate environment.
Investors now look ahead to November’s Consumer Price index, due on Thursday, and Personal Consumption Expenditures index, scheduled to release on Friday.
Spot silver fell 0.6 percent to USD63.58 an ounce, retreating from a record high of USD64.65 on Friday. Platinum added 2.3 percent to USD1,824.50, its highest level since September 2011, while palladium edged 0.8 percent up to USD1,580.22, hitting a two-month high.
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