Gold prices steadied, with focus on U.S. jobs data due this week, as the market looks for clues on the strength of the Federal Reserve's impending rate-cutting cycle.
Bullion has been trading in a tight range — with bid-ask spreads hovering around $2,500 an ounce — this week. Gold rose on Wednesday after a report showed U.S. job openings fell to their lowest level since the start of 2021 in July. The figures add to signs of a slowing labor market, boosting bets on sharp interest rate cuts, which would likely support gold, which is non-yielding.
The U.S. nonfarm payrolls report is due out on Friday. The earlier data — one of the weakest since the pandemic — proved crucial after August’s data helped drag down global stocks, sending gold lower as traders covered long positions on margin.
Gold has risen more than 20% this year, supported by growing optimism that the Federal Reserve will focus on monetary easing. Gold prices have also been supported by strong over-the-counter buying and strong safe-haven demand due to conflicts in the Middle East and Ukraine.
Spot gold was little changed at $2,495.98 at 8:17 a.m. in Singapore, after peaking at a record $2,531.75 in August. The Bloomberg Dollar Spot Index fell 0.1 percent, after falling 0.3 percent in the previous session. Silver, palladium and platinum were little changed.
