Gold prices climb as investors await US jobs data
Gold extended gains in Asian trading Thursday, buoyed by a weaker dollar, as investors looked ahead to key US jobs data for clues on Fed policy.
Key Takeaways
AIGold prices rose at the start of Asian trading on Thursday, after posting their biggest daily gain since mid-August in the previous session, supported by a weaker dollar as investors awaited this week’s US nonfarm payrolls report for signals on the Federal Reserve’s interest rate outlook.
Spot gold climbed 0.6 percent to $2082.76 per ounce by 00:36 GMT, following a 3.4 percent jump yesterday. US gold futures for December delivery also rose 0.5 percent to $2092.90.
The dollar weakened on Wednesday after a sweeping election victory removed a source of market uncertainty, while investors evaluated the possibility of regulatory changes.
A weaker dollar increases the appeal of the dollar-priced precious metal for holders of other currencies.
A report from ADP Research Institute released Wednesday showed private sector job growth in the US continued to rise in October.
Investors are now awaiting the US nonfarm payrolls report due Friday to better gauge the Federal Reserve’s monetary policy outlook.
According to CME’s FedWatch tool, traders currently see an 83 percent chance the Fed will raise interest rates in December.
Higher interest rates typically increase the opportunity cost of holding non-yielding bullion, reducing its attractiveness.
Among other precious metals, spot silver rose 0.3 percent to $52.37 per ounce, platinum gained 0.6 percent to $1,505.85, while palladium slipped 0.1 percent to $1,003.83.