Gold gains with traders awaiting US data for fresh Fed cues

[BENGALURU] Gold prices edged higher on Thursday (Nov 20), as investors looked forward to the release of the delayed US jobs report that could shed more light on the Federal Reserve’s interest rate trajectory.

Spot gold was up 0.3 per cent at US$4,092.98 per ounce, as at 9.53 am. US gold futures for December delivery edged 0.2 per cent higher to US$4,092.70 per ounce.

Investors now await the September US non-farm payrolls report due later in the day after being delayed due to the recent US government shutdown.

Economists polled by Reuters expect the report will show that employers added 50,000 jobs during the month.

Minutes from the Fed’s October meeting released on Wednesday showed it cut interest rates even as policymakers cautioned that doing so could risk entrenched inflation and a loss of public trust in the US central bank.

Traders now see nearly a 33 per cent chance for a rate cut at the Fed’s Dec 9 to 10 meeting, down from 49 per cent on Wednesday, CME Group’s FedWatch tool showed.

Non-yielding gold tends to do well in a low-interest-rate environment and during times of economic uncertainties.

Meanwhile, US President Donald Trump on Wednesday doubled down on his criticism of Fed chair Jerome Powell for not lowering interest rates more quickly.

The US dollar index held steady near a two-week high against its rivals. A stronger US dollar makes gold more expensive for holders of other currencies.

A relief rally swept across Asian markets and lifted stocks in early trading on Thursday as investors cheered Nvidia’s market-topping earnings.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said that its holdings rose 0.22 per cent to 1,043.72 tonnes on Wednesday from 1,041.43 tonnes on Tuesday.

Elsewhere, spot silver gained 0.4 per cent to US$51.58 per ounce, platinum climbed 1 per cent to US$1,561.39, and palladium added 1.4 per cent to US$1,399. REUTERS