Gold Holds Steady as Spotlight Shifts to US Payrolls Data

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)
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Gold Holds Steady as Spotlight Shifts to US Payrolls Data

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)

Gold prices steadied on Thursday as investors held back from placing big bets ahead of US non-farm payrolls data that could influence the Federal Reserve's interest rate trajectory as markets awaited this year's final policy-setting meeting.

Spot gold held its ground at $2,649.69 per ounce, as of 1221 GMT. US gold futures also eased 0.1% to $2,673.30.

The market's focus is on initial jobless claims due later in the day and the US non-farm payrolls (NFP) report on Friday, with the payrolls likely increasing by 200,000 jobs in the month after rising by only 12,000 in October, Reuters reported.

A robust NFP number is more or less priced in, and if we see weakness in the report, it could add some support to gold prices as the market is kind of pricing in that the US economy is doing quite well, said Ole Hansen, head of commodity strategy at Saxo Bank.

Gold market is seeing "a relatively tight range. It does indicate the market is lacking a bit of oxygen, lacking a bit of directional input," Hansen said.

Fed Chair Jerome Powell said on Wednesday that the US economy is stronger than expected and suggested a more cautious stance towards interest rate cuts.

Traders are pricing in a 74% chance of a 25-basis-point cut at the Fed's Dec. 17-18 meeting, according to the CME Group's FedWatch Tool. Bullion, which does not pay any interest, historically performs well in a low-interest rate environment.

"Gold prices could see a short-term rise toward $2,700 per ounce, driven by seasonal weakness in the US dollar, which historically underperforms in December. However, a deeper correction in gold prices remains possible over the medium term," said Zain Vawda, market analyst at MarketPulse by OANDA.

Spot silver was up 0.1% at $31.32 per ounce. Platinum rose 0.2% to $942.95 and palladium fell 0.1% to $976.83.



UK Economy Ekes Out Modest Growth in Final Quarter of 2024

Britain's Chancellor of the Exchequer Rachel Reeves speaks about her plans for Britain's economy in Eynsham, England, Wednesday Jan. 29, 2025. (Peter Cziborra/Pool Photo via AP)
Britain's Chancellor of the Exchequer Rachel Reeves speaks about her plans for Britain's economy in Eynsham, England, Wednesday Jan. 29, 2025. (Peter Cziborra/Pool Photo via AP)
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UK Economy Ekes Out Modest Growth in Final Quarter of 2024

Britain's Chancellor of the Exchequer Rachel Reeves speaks about her plans for Britain's economy in Eynsham, England, Wednesday Jan. 29, 2025. (Peter Cziborra/Pool Photo via AP)
Britain's Chancellor of the Exchequer Rachel Reeves speaks about her plans for Britain's economy in Eynsham, England, Wednesday Jan. 29, 2025. (Peter Cziborra/Pool Photo via AP)

The British economy managed to eke out a quarterly growth of 0.1% in the final quarter of 2024 following a stronger than anticipated performance in December.
The Office for National Statistics said Thursday that the 0.4% expansion in December was a result of a broad-based expansion, with pubs doing particularly well in the run-up to Christmas.
The fourth quarter figures means the economy grew by 0.9% overall in 2024, The Associated Press reported.
The quarterly increase followed no growth in the previous three months and may ease some of the pressure on Treasury chief Rachel Reeves, who critics say has been partly responsible for the economic slowdown since Labour returned to power in July.
Last week, the Bank of England halved its growth forecast for the British economy for 2025 to 0.75% as it cut its main interest rate to 4.5%.
If that turns out to be remotely accurate, it will be hugely disappointing news for the UK’s new Labour government, which has made growth its top mission. The party has pledged to boost living standards and generate funds for cash-starved public services. With growth proving elusive, the party’s popularity has fallen sharply since its election victory in July.
In recent weeks, Reeves has set out plans to boost longer-term growth, such as backing a third runway at London's Heathrow Airport. She has also pledged to create a Silicon Valley-like technology hub between the two university towns of Oxford and Cambridge, backed the regeneration of the area around Manchester United’s Old Trafford soccer stadium, as well as a “reset” of the UK’s post-Brexit economic relations with the European Union.
Reeves said the government will go “further and faster” to bolster growth in the months and years ahead.
“That is why we are taking on the blockers to get Britain building again, investing in our roads, rail and energy infrastructure, and removing the barriers that get in the way of businesses who want to expand," she said.