Gold prices slipped to $4,529.40 and held above $4,500 as traders positioned for U.S. payrolls data and a 50% CME FedWatch probability of a Fed rate hike this month.
Gold is the article's primary asset: prices fell 0.2% to $4,529.40 a troy ounce and New York futures are on track for a modest weekly loss. CME FedWatch shows a 50% chance the Fed raises rates this month, a headwind for non-yielding bullion. U.S. payrolls data will set the next leg lower or trigger a rebound from the $4,500 floor.
Gold slipped only 0.2% to $4,529.40, with the $4,500 level holding as a psychological floor. Traders are waiting for payrolls data before making bigger directional bets.
A strong payrolls report that reinforces the 50% probability of a Fed rate hike this month would trigger a break below $4,500 and extend the metal's weekly loss.
Higher interest rates raise the opportunity cost of holding gold, which pays no yield. With CME FedWatch showing 50% odds of a hike this month, traders have trimmed gold exposure.
Gold slipped 0.2% to $4,529.40 a troy ounce in early European trading, holding above $4,500 as investors awaited U.S. payrolls data. CME FedWatch shows a 50% probability the Federal Reserve raises rates this month, while Governor Christopher Waller said he would support holding rates steady if August inflation data continue the recent progress seen in June and July. A hotter payrolls print would reinforce rate-hike bets and extend bullion's modest weekly loss.
Gold fell 0.2% to $4,529.40 a troy ounce in early European trading as investors awaited nonfarm payrolls for clues on Fed policy. Prices held above $4,500, with the report likely to determine the next direction.
CME FedWatch shows traders pricing in a 50% chance the Federal Reserve will raise interest rates this month. That rate-hike risk weighs on non-yielding gold.
Waller said Thursday he would support holding rates steady if August inflation data continue the recent progress seen in June and July. His stance contrasts with market pricing of a 50% chance of a hike this month.