Gold prices held steady on Wednesday as investors awaited U.S. jobs data and Federal Reserve Chair Jerome Powell's comments for clarity on the trajectory of interest rate cuts.
By 3:50 PM AEDT (4:50 am GMT), spot gold edged up just $3.40 or 0.1% to US$2,647.35 per ounce.
Market participants are focused on the ADP employment report due later in the day and Friday’s payrolls data, which could influence the Fed’s decision-making.
Current CME Group FedWatch data indicates a 73% probability of a 25-basis-point rate cut at the Fed’s December meeting, with further cuts projected into 2025.
However, the outlook remains uncertain as strong U.S. labour market data, including a solid rise in job openings in October, suggest the Fed may adopt a more cautious stance.
Non-yielding gold benefits from lower interest rates, but stronger U.S. Treasury yields and a resilient dollar have capped gains in recent weeks.
Meanwhile, geopolitical tensions, including Israel’s retaliatory airstrikes against Hezbollah and ongoing concerns about President-elect Donald Trump’s tariff plans, continue to lend support to the safe-haven asset.
