Gold edges higher after US jobs report backs rate cut bets

Gold prices rose on Friday after the November US jobs growth report.

Spot gold was up 0.2% at $2,636.31 an ounce by 01:41 pm ET (1841 GMT). US gold futures rose 0.4% to settle at $2,659.60.

US job growth picked up in November, but this may not signal a material change in labor market conditions that would continue to ease and allow the Fed to cut interest rates again this month.

“The data was somewhere in between. We see higher-than-expected nonfarm payrolls, which could be bearish sentiment on gold in the short-term, but private payrolls came in slightly lower than forecast at around 9,000, confirming this. The likely Fed will cut in the next two weeks. ,” said Alex Abkarian, chief operating officer of Allegiance Gold.

The U.S. dollar and U.S. Treasuries yields fell after a labor market report showed nonfarm payrolls rose by 227,000 jobs last month after rising by an upwardly revised 36,000 in October. Economists polled by Reuters had forecast an acceleration of 200,000.

The prospect of a rate cut starting with a half-basis point cut in September has fueled gold’s record rally this year, as low rates boost the appeal of holding non-yielding gold.

Traders now see an 87% chance of a 25-basis-point cut at the Fed’s December meeting, versus a 72% chance before the payrolls data.

“The report falls largely in the ‘Goldilocks’ camp, meaning the data was neither too hot nor too cold. It suggests the Fed may go ahead with its December meeting and cut interest rates,” Jim Wyckoff said. said a senior market analyst. In Kitco Metals.

Spot silver fell 1.1% to $31 an ounce, but was higher for the week.

Platinum fell 1.3% to $925.78 and palladium fell 0.5% to $957.83. Both metals are set for second straight weekly losses.