Gold prices hover near record highs ahead of key labor market data
2024.09.02 19:08
Gold prices opened nearly unchanged amid the prospect of a rate cut by the Federal Reserve in September continues to be a major focus for investors.
At 18:57 EST (22:57 GMT), prices were down 0.06% at $2,498.10.
The precious metal had a strong performance this past month, with prices reaching a record peak of $2,531.60 on August 20. However, the market’s attention is now shifting towards the upcoming U.S. non-farm payroll report expected Friday.
The report’s findings will play a crucial role in shaping expectations for the Federal Reserve’s upcoming decision on interest rates.
The labor market data for August is seen as pivotal in determining the extent of the interest rate cut, whether it will be 50 basis points or 25 basis points, at the Fed’s September meeting.
Traders have made a slight adjustment to their expectations, with the likelihood of a 25-basis-point cut now at 69%, while the chance of a more significant 50-basis-point reduction has decreased to 31%, according to the CME FedWatch tool.
The demand for physical gold has remained subdued in major Asian markets, with new import quotas not providing the anticipated boost to Chinese demand.
