Gold prices held in a tight range on Thursday as traders remained on the sidelines ahead of the release of key US economic data that could provide clues to the extent of the Federal Reserve’s interest rate cuts expected later in the year.
Spot gold was steady at $2,655.03 an ounce by 0333 GMT. Prices reached a record high of $2,685.42 on September 26.
U.S. gold futures gained 0.2% to $2,675.40.
Gold is consolidating at the moment, but prices are expected to retest the all-time high of $2,685 as charts show persistent uptrends, Brian Lan told broker GoldSilver Central based in Singapore.
Investors are watching ISM services data and initial jobless claims, due later in the day, as well as U.S. nonfarm payrolls data, due Friday.
Data on Wednesday showed that U.S. private employment grew more than expected in September – further evidence that labor market conditions have not deteriorated.
Expectations of another 50 basis point rate cut at the Fed’s November meeting have diminished, with markets currently pricing the chance at 36%, down from 57% last week, according to the Fed’s FedWatch tool. CME.
Gold tends to thrive in an environment of low interest rates and political unrest.
“Tensions in the Middle East and the US elections will continue to support gold in the long term… In the short term, some funds may shift to oil rather than gold as oil is doing better,” added Mr. Lan. [O/R]
Israel bombed central Beirut, killing at least six people, after its forces suffered the deadliest day on the Lebanese front in a year of clashes against the Iran-backed Hezbollah armed group.
Elsewhere, Perth Mint gold sales hit a 10-month high in September, while silver sales hit a 7-month high.
Spot silver fell 0.9% to $31.58, platinum lost 0.5% to $997.90 and palladium lost 1.3% to $1,001.80.
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