Gold prices stabilized on Wednesday as markets await U.S. jobs data and comments from Federal Reserve Chairman Jerome Powell for more on the interest rate cut trajectory Americans.
Spot gold held steady at $2,644.42 an ounce, as of 20203 GMT.
U.S. gold futures fell 0.1% to $2,666.40.
The US ADP employment report is due at 1315 GMT, ahead of the US payrolls report on Friday. Powell is expected to speak later today in what is expected to be his final public remarks before the Fed’s December meeting.
The main factor behind gold’s lackluster move is that markets have priced in a much weaker U.S. rate cut cycle for 2025, said Kelvin Wong, OANDA’s senior market analyst for Asia Pacific.
However, the longer-term uptrend for gold remains intact amid growing trade tensions and potential strain on US budget deficits, he added.
U.S. central bankers have signaled support for further cuts, but none have spoken for or against them at their next meeting in two weeks. Officials have been careful not to give too many indications about how policy will likely evolve, particularly since President-elect Donald Trump’s re-election last month.
According to the CME Group’s FedWatch tool, traders estimate a 73% chance of a 25 basis point cut by the Fed this month, with 80 basis points of reduction expected by the end of the year 2025.
Separately, Tuesday’s data showed that U.S. job openings rose moderately in October, while layoffs declined. A strong jobs report could prompt the Fed to take a cautious stance on rate cuts.
Zero-yielding bullion thrives in a low interest rate environment.
According to Wang Tao, technical analyst at Reuters, spot gold could test support at $2,621 an ounce, a break below could open the way to the $2,594-$2,608 range.
Spot silver rose 0.1 percent to $31.06 an ounce, platinum fell 0.2 percent to $951.90 and palladium lost 0.3 percent to $968.89.
