Gold prices were steady in early trading on Wednesday as investors awaited a monthly U.S. jobs report that could influence how quickly and how quickly the Federal Reserve will cut interest rates this year.
Update prices
Spot gold was steady at $2,493.34 per ounce by 0200 GMT, according to Reuters data, after falling to its lowest in more than a week on Tuesday. U.S. gold futures were little changed at $2,524.80.
Economists polled by Reuters expect Friday's nonfarm payrolls report to show an increase of 165,000 jobs in August, up from a gain of 114,000 in July.
Before that, Wednesday's job openings and Thursday's jobless claims report will be in the spotlight.
Traders see a 41 percent chance of a 50 basis point rate cut on Sept. 18 and a 59 percent chance of a 25 basis point cut, according to the CME Group's FedWatch tool.
If the jobs data comes in weak, it would increase the likelihood of a 50 basis point rate cut and raise concerns about slowing growth, which would be supportive of gold, said Kyle Rodda, a financial markets analyst at Capital.com.
Gold is considered a safe-haven asset during times of political and economic uncertainty and tends to recover in the face of low interest rates.
Gold has gained 21 percent since the start of the year and hit an all-time high of $2,531.60 on Aug. 20, supported by bets on a U.S. interest rate cut and concerns about conflict in the Middle East.
Among other precious metals, spot silver fell 0.4 percent to $27.94 an ounce, platinum rose 0.2 percent to $904.65, and palladium was flat at $938.57.
