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US jobs data and gold poised to be released

Gold prices increased on Friday, and are on track to have their best week for three months. This is due to growing expectations that the U.S. will cut its interest rates this month. Attention now turns towards the U.S. Non-farm Payrolls data, which is expected later in the afternoon.

As of 0332 GMT spot gold was up 0.3%, at $3,556.21 an ounce. It is hovering around the all-time high reached on Wednesday of $3,578.50. Bullion is up 3.2% this week.

U.S. Gold Futures for December Delivery gained 0.2% to $ 3,615.

Tim Waterer, KCM Trade's Chief Market Analyst, said: "Gold is slowly creeping up today. Traders are not willing to push the price higher too much until we see non-farm payrolls printed."

The market dynamics are still in favor of gold, with Trump's efforts to make the Federal Reserve a more dovish institution, and the Russia/Ukraine conflict continuing.

The number of Americans who filed new claims for unemployment benefits last week was higher than expected, which is consistent with a softer labor market.

The ADP National Employment Report also showed that private payrolls in the U.S. increased less than expected for August.

This week, several Fed officials said that concerns about the labor market continue to motivate their belief that future rate cuts are imminent. Fed Governor Christopher Waller believes the U.S. Central Bank should cut rates at its next meeting.

According to CME Group’s FedWatch tool, traders are pricing in a nearly 100% chance that the Fed will cut rates by 25 basis points at the conclusion of its two-day policy meeting on the 17th of September.

Gold that does not yield is usually a good investment in an environment with low interest rates.

The Fed will also focus on the U.S. Non-Farm Payrolls Data, which is due at 1230 GMT and could provide more clarity about the interest rate trajectory.

Silver spot rose 0.4% per ounce to $40.85 and was on its way to a third consecutive weekly gain. Palladium increased 0.3% and platinum gained 1.3%.

(source: Reuters)