Spot gold rose 0.2 per cent at $2,023.40 per ounce and U.S. gold futures for February delivery increased 0.2 per cent to $2,041.20
Gold prices rose on Wednesday as the dollar dropped and weaker-than-expected U.S. jobs data cemented expectations that the Fed’s policy tightening cycle has come to an end.
Spot gold rose 0.2 per cent at $2,023.40 per ounce by 0538 GMT. U.S. gold futures for February delivery also increased 0.2 per cent to $2,041.20.
Volatility in gold prices is likely to remain capped heading into Friday’s U.S. non-farm payrolls data, said City Index Senior Analyst Matt Simpson.
It might take a particularly weak set of numbers for gold to post strong gains from here — as many bullish fingers were likely burned with gold’s false break to a record peak, Simpson added.
Bullion jumped to a record high of $2,135.40 on Monday on elevated bets for a Fed rate cut, before declining more than $100 in the same session, on uncertainty over the timing of the monetary policy easing.
Data on Tuesday showed U.S. job openings dropped to a more than two-and-a-half year low in October, indicating that higher rates were dampening demand for workers.
The dollar index dropped 0.2 per cent against a basket of currencies after rising to a two-week high on Tuesday, making gold less expensive for other currency holders.
Attention now shifts to the Friday release of the November non-farm payrolls data that could provide more clues on U.S. interest rate outlook ahead of Fed’s policy meeting next week.
Traders are pricing in about a 60 per cent possibility of a rate cut by March next year, according to CME’s FedWatch Tool.
Silver gained 0.6 per cent to $24.27 per ounce, while platinum added 0.3 per cent to $901.30. Palladium gained 0.9 per cent to $943.01 per ounce, after reaching a more than five-year low on Tuesday.