Gold Steady After Two-Day Gain Ahead of Key US Economic Data
Gold prices hold steady as traders await crucial US jobs data that could influence the Federal Reserve’s rate decisions
Gold, US, Federal Reserve, Jobs Data, Economy
Singapore: Gold is holding its ground after a two-day rise. Traders are keeping a close eye on the upcoming jobs report that could sway the Federal Reserve’s decisions.
Right now, gold is trading around $2,660 an ounce. It gained about 0.5% on Wednesday after a report showed that hiring and wage growth in the US slowed down in December. The Fed has to juggle these numbers with rising inflation concerns when thinking about cutting rates.
Lower interest rates usually help gold since it doesn’t pay interest. So, traders are really focused on the payroll data coming out on Friday. They expect job growth to slow a bit but still remain strong, which could continue into 2025.
Last year, gold prices shot up by 27%, thanks to the Fed’s monetary easing. But after Trump’s election win, the dollar got stronger, and gold’s momentum slowed down. Now, some analysts, like those at Goldman Sachs, are saying gold might not hit $3,000 an ounce until mid-2026 due to fewer expected rate cuts.
As of 8:14 a.m. in Singapore, spot gold dipped slightly to $2,660.57 an ounce. The dollar index was steady, while silver and palladium prices remained unchanged, and platinum saw a slight drop.
[rule_2]