Gold continues to rise amid anticipation of US jobs data
Gold prices rose, supported by a weak dollar, as investors awaited the US non-farm payrolls report and its impact on interest rate policy.
Translated by Qiyas from الراي — Original source
Gold prices rose at the start of Asian trading on Thursday, after posting their largest daily gain since mid-August in the previous session, supported by a weaker dollar as investors awaited the non-farm payrolls report due this week for clues on Federal Reserve interest rate policy expectations.
Spot gold rose 0.6 percent to $4,082.76 per ounce by 00:36 GMT, following a 3.4 percent increase yesterday.
The dollar fell on Wednesday after the Democrats’ landslide victory in the U.S. midterm elections removed a source of market uncertainty, as investors assessed the likelihood of regulatory changes.
Investors are now awaiting the U.S. non-farm payrolls report, due on Friday, to better gauge expectations for Federal Reserve monetary policy.
According to CME’s FedWatch tool, traders currently price in an 83 percent probability that the U.S. central bank will raise interest rates in December.
Higher interest rates typically increase the opportunity cost of holding the non-yielding precious metal, thereby reducing its appeal.
In other precious metals, spot silver rose 0.3 percent to $52.37 per ounce, platinum gained 0.6 percent to $1,505.85, while palladium fell 0.1 percent to $1,003.83.
