Gold steady ahead of US jobs data

Gold prices saw little change at the start of Asian trading sessions on Thursday, as investors awaited US jobs data in search of clues about the trajectory of interest rates. By 00:27 GMT, spot gold was steady at $4,146.66 per ounce, while US December gold futures fell 0.3% to $4,177. The US non-farm payrolls report for September is scheduled for release on Friday.

Data released on Wednesday showed that US inflation rose less than expected in August, with price pressures proving milder than previously reported in the prior month. Gold prices briefly rose following the data release but closed the session lower. The data reduced expectations for a Federal Reserve interest rate hike in October, although traders see an 87% probability of a rate increase in December. Higher interest rates reduce gold’s appeal because it yields no return.

On the geopolitical front, Iran said on Wednesday that it had received a response from the United States to its latest proposal to revive a ceasefire that collapsed in the Gulf, days after President Donald Trump stated he had rejected the proposal.

Meanwhile, Egypt’s mining sector attracted investment plans worth hundreds of millions of dollars this week, as companies sought to explore for gold and other minerals in a country regarded as one of the least explored for such resources in Africa.

In other precious metals, spot silver fell 0.4% to $60.17, platinum dropped 0.1% to $1,704.95, and palladium declined 0.4% to $1,200.85.