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Gold consistent; all eyes on US tasks data, Fed Chair's speech

Gold rates steadied on Wednesday as markets waited for U.S. jobs data and remarks from Federal Reserve Chair Jerome Powell for further insights into the U.S. interest rate cut trajectory.

Area gold held its ground at $2,644.42 per ounce, as of 0203 GMT.

U.S. gold futures eased 0.1% to $2,666.40.

The U.S. ADP employment report is due at 1315 GMT, ahead of the U.S. payrolls report on Friday. Powell is scheduled to speak later in the day in what is expected to be his last public remarks before the Fed's December meeting.

The main element behind gold's drab motion is that markets prepared for a much shallower U.S. rate cut cycle for 2025, stated Kelvin Wong, OANDA's senior market analyst for Asia Pacific.

Nevertheless, the longer-term bullish trend for gold remains undamaged in the middle of increasing trade stress and prospective stress on U.S. deficit spending, he included.

U.S. central lenders signified support for more cuts, however none pushed strongly for or against doing so at their next meeting in two weeks. Authorities have been wary of offering too much guidance about how policy will likely progress, especially considering that President-elect Donald Trump's re-election last month.

According to the CME Group's FedWatch Tool, traders see about 73% possibility of a 25-basis-points decrease by the Fed this month, with 80 bps of cuts expected by the end of 2025.

On the other hand, information on Tuesday revealed that U.S. task openings increased reasonably in October while layoffs declined. A strong tasks report could lead the Fed to take a cautious position on cutting rates.

Non-yielding bullion prospers in low rates of interest environment.

According to Reuters technical analyst Wang Tao, spot gold may test support at $2,621 per ounce, a break listed below might open the method towards the $2,594-$ 2,608 range.

Spot silver increased 0.1% to $31.06 per ounce, platinum dropped 0.2% to $951.90 and palladium shed 0.3% to $968.89.

(source: Reuters)