Gold prices were steady on Wednesday, December 10, as the US dollar rose following a stronger-than-expected jobs report, putting pressure on the precious metal ahead of a Federal Reserve meeting expected to see another interest rate cut.
Spot gold was steady at $4,210.29 an ounce, while February gold futures rose about 0.1% to $4,240.60 an ounce.
The dollar rose to its highest level in nearly a week on Tuesday, supported by strong US jobs data that boosted confidence in the strength of the labor market ahead of the Federal Reserve meeting. Yields on the benchmark 10-year US Treasury note also climbed, rebounding from earlier declines to settle at their highest level in two and a half months, reached on Monday.
Data from the US Department of Labor revealed that the number of available jobs rose to 7.67 million in October, exceeding expectations of 7.15 million jobs, indicating the continued strength of the labor market.
Meanwhile, White House economic adviser Kevin Hassett, the frontrunner to head the Federal Reserve, said during a Wall Street Journal event on Tuesday that there was ample scope for further interest rate cuts, but noted that the course could change if inflation rises.
The Federal Open Market Committee's two-day meeting is scheduled to conclude with an interest rate decision on Wednesday, with investors pricing in an 88.6% probability of a 25-basis-point cut. Non-yielding assets, such as gold, typically benefit from a low-interest-rate environment.
As for other precious metals, the price of silver rose 0.5% in spot trading to a new record high of $61.02 an ounce, after surpassing the $60 mark on Tuesday.
