Gold steadied, having gained nearly 1% in the previous session on growing expectations of another interest-rate cut in the US.
Bullion was trading around $4,165 an ounce, supported by a series of comments by Federal Reserve policymakers that point toward further monetary easing in December. Swap traders see a roughly 80% chance of a quarter-point cut next month, with the latest US jobless claims data seen as unlikely to derail the Fed from a reduction.
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Reinforcing prospects for lower rates, a key economic adviser to Donald Trump is emerging as the frontrunner to be the next Fed chair. Kevin Hassett is considered to be someone who would bring the president’s approach to monetary policy. Gold typically benefits when rates are low, as it doesn’t pay interest.
Gold edged up 0.1% to $4,165.82 an ounce as of 7:27 a.m. Singapore time. The Bloomberg Dollar Spot Index ended the earlier session 0.3% lower. Silver was steady after rising 3.7% on Wednesday. Palladium gained, while platinum was flat.