Gold prices climbed to near seven-week highs during Wednesday’s Asian session as signs of cooling in the United States labour market weighed on the U.S. dollar and reinforced expectations that the Federal Reserve may deliver further interest rate cuts.
By 4:05 pm AEDT (5:05 am GMT), spot gold was up 0.6% at $4,329.53 per ounce, extending gains after recent U.S. employment data pointed to slowing momentum in hiring despite remaining relatively resilient.
The mixed labour market report strengthened bets that the Fed will continue easing monetary policy, putting pressure on the greenback.
Lower interest rates tend to reduce the opportunity cost of holding non-yielding assets such as gold, providing support for the precious metal.
Investors are now looking ahead to comments from Fed officials later on Wednesday, with New York Fed President John Williams and Atlanta Fed President Raphael Bostic scheduled to speak.
Any hawkish signals could lend support to the U.S. dollar and cap gains in dollar-denominated commodities in the near term.
Attention will also turn to key U.S. inflation data, with the November consumer price index and personal consumption expenditures price index due for release later in the week.
Both releases are expected to play a crucial role in shaping expectations around the pace and scale of future Fed rate cuts.
Elsewhere in the precious metals market, silver surged 3.5% to a fresh record high above $65.82 per ounce.
