Mumbai, 05 Dec (Commoditiescontrol): Gold prices remained steady on Thursday as investors exercised caution ahead of the release of U.S. payroll data, a key indicator that could shape expectations for the Federal Reserve's monetary policy.
Spot gold held firm at $2,648.89 per ounce, while U.S. gold futures dipped slightly by 0.1% to $2,672.60.
The eagerly awaited payroll report, due on Friday, will be followed next week by U.S. inflation data for November, both of which are expected to influence the Fed's stance on interest rates. According to the CME Group's FedWatch Tool, markets currently estimate a 79.3% probability of a 25-basis-point rate cut this month, with further cuts totaling 85 basis points by the end of 2025.
Federal Reserve Chair Jerome Powell, in comments made on Wednesday, acknowledged the economy’s unexpected strength since September when the Fed began easing rates. He signaled a preference for a cautious approach to future rate reductions. Supporting this sentiment, Richmond Fed President Thomas Barkin expressed optimism about progress in inflation and employment, while San Francisco Fed President Mary Daly highlighted that there is "no sense of urgency" to accelerate rate cuts.
Higher interest rates tend to reduce the appeal of non-yielding assets like gold, which has contributed to its range-bound performance. However, softer data from the U.S. private payrolls and services sectors has provided some support to expectations for easing monetary policy. The ADP National Employment Report showed moderate private payroll growth in November, while U.S. services sector activity cooled after recent gains but remained consistent with solid economic growth in the fourth quarter.
Among other precious metals, spot silver slipped 0.1% to $31.31 per ounce, platinum dropped 0.2% to $939.07, and palladium edged down 0.3% to $975.48.
As investors await further economic data, the outlook for gold remains uncertain, with its trajectory largely dependent on the Federal Reserve’s forthcoming decisions and evolving market conditions.
(By Commoditiescontrol Bureau: 09820130172)
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