Advertisements
Home Gold News Gold Prices Edge Higher Ahead of U.S. Payrolls Data

Gold Prices Edge Higher Ahead of U.S. Payrolls Data

by anna

November 1 — Gold prices rose slightly on Friday as investors prepared for upcoming U.S. payrolls data, which could provide insights into the Federal Reserve’s interest rate outlook. As of 0756 GMT, spot gold was up 0.2% at $2,748.40 per ounce, recovering from a drop on Thursday after reaching a record high of $2,790.15. U.S. gold futures increased by 0.4% to $2,758.70.

“Investors are maintaining a strategy of buying the dips, which is likely to continue through the upcoming U.S. election and beyond, given the expected volatility,” said Marex analyst Edward Meir. The election on November 5 is heating up, with polls showing a close race between Donald Trump and Kamala Harris.

Advertisements

Regardless of the election outcome, gold is expected to remain strong, as ongoing deficit spending is unlikely to change rapidly, according to Alex Ebkarian, chief operating officer at Allegiance Gold. Market attention is now fixed on the U.S. nonfarm payrolls report, scheduled for release at 1230 GMT, which will offer insights into the health of the U.S. economy.

Advertisements

Traders currently anticipate a 95% chance of a 25-basis-point interest rate cut by the Federal Reserve next week. “With no signs of recession and inflation decreasing, the economic outlook appears positive. The key question is how quickly the Fed will reduce rates,” Meir noted. Gold, which does not yield interest, tends to perform well in a low-rate environment.

Advertisements

Recent data indicated that U.S. labor costs experienced their smallest increase in over three years during the third quarter, suggesting that inflation is on a downward trend.

Advertisements

On the physical market front, gold demand in India surged this week due to festival purchases, although overall volumes were lower than typical because of the record high prices.

In other metals, spot silver remained unchanged at $32.64 per ounce, while platinum gained 0.3% to $990.25, both metals heading for weekly declines. Palladium was stable at $1,105.96, recovering from a more than one-week low earlier in the session.

Related topics:

Advertisements

You may also like

Lriko logo

Lriko is a gold portal website, the main columns include gold pricespot goldsilver pricespot silvergold futures, nonfarm payroll, gold basics, gold industry news, etc.

© 2023 Copyright  lriko.com