Gold prices remained subdued in Asian trading on Tuesday, hovering below US$2,650 as investors await the U.S. JOLTS job openings report. This data marks the start of a critical week for U.S. labour statistics, which could influence the Federal Reserve’s outlook on future interest rate cuts.
By 3:50 pm AEDT (4:50 am GMT) spot gold was trading flat at US$2,639.98 per ounce.
Meanwhile, the U.S. dollar ticked up during Tuesday's Asian trade after Fed Governor Christopher Waller noted that monetary policy remains restrictive enough to allow flexibility in adjusting the pace of rate cuts.
Waller added, "An additional cut at our next meeting will not dramatically change the stance of monetary policy and allow ample scope to later slow the pace of rate cuts, if needed, to maintain progress toward our inflation target."
Earlier, the dollar had gained on risk aversion following President-elect Donald Trump’s weekend warning to BRICS nations, threatening 100% tariffs if they develop or support an alternative currency to the Greenback.
Traders are eyeing U.S. employment data, particularly the nonfarm payrolls report on Friday, which could impact expectations for a 25 basis-point rate cut at the Federal Reserve’s upcoming meeting.
According to the CME Group’s FedWatch Tool, the likelihood of such a cut has risen to 76.2% from 65% just a day ago.
Elsewhere, geopolitical tensions remain a factor for gold traders. The ongoing Russia-Ukraine conflict and escalating hostilities in the Middle East involving Israel and Iran could further influence demand for the safe-haven asset.