Gold flat as investors await US payrolls data
Gold prices were little changed on Thursday as investors awaited U.S. payrolls data that is expected to provide more insights into the Federal Reserve's monetary policy path.
Spot gold was nearly unchanged at $2,647.17 per ounce, as of 0326 GMT. U.S. gold futures eased 0.2% to $2,671.10.
"Gold prices probably will stay around these levels with a downward bias at least until (the end of) December," said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.
The payrolls report on Friday will be followed U.S. inflation data for November, which is expected next week.
Markets currently see a 73.8 % chance of a 25-basis-point rate cut this month and an 85 bps reduction by the end of 2025, according to the CME Group's FedWatch Tool.
Fed Chair Jerome Powell on Wednesday said the U.S. economy is stronger than the central bank had expected in September when it began trimming rates and appeared to signal his support for a slower pace of cuts in future.
"There's no sense of urgency" on cutting rates, San Francisco Fed Bank President Mary Daly said.
Higher rates reduce the appeal of holding the non-yielding asset.
Data on Wednesday showed that U.S. private payrolls grew at a moderate pace in November, while services sector activity slowed after big gains in recent months but remained above levels consistent with solid economic growth in the fourth quarter.
"After outperforming this year, gold prices are likely to take a breather in the short term... Recent dollar strength is likely to continue, and this will be another headwind for gold demand," ANZ said in a note. [USD/]
"Silver prices will struggle to move higher amid consolidating gold prices in the short-term."
Spot silver fell 0.3% to $31.21 per ounce, platinum steadied at $941.58 and palladium was flat at $977.31.
