As investors prepared for a monthly data on U.S. payrolls, which might impact the pace and extent of this year’s Federal Reserve interest rate cuts, gold prices remained stable on Wednesday. Spot gold maintained its position at $2,493.34 per ounce on Tuesday, after plunging to its lowest level in over a week. At $2,524.80, US gold futures were essentially unchanged.
The non-farm payrolls report on Friday is expected to show a 165,000 increase in jobs in August, compared with a 114,000 increase in July. Prior to that, the focus will be on job openings data on Wednesday and the ADP employment and jobless claims reports on Thursday.
It is predicted by traders that there will be a 50 basis point (bp) rate cut on September 18 with a 59% possibility of a 25 bp reduction. “weak jobs data will raise worries about growth slowdown and increase the probability of a 50-bp cut, which will be supportive for gold.”
