Gold ticks up as dollar slips, investors await US jobs data
Gold prices edged higher on Wednesday as the dollar eased and weaker-than-expected U.S. jobs data cemented expectations that the Federal Reserve's policy tightening cycle has come to an end.
Spot gold rose 0.2% at $2,023.39 per ounce by 0415 GMT. U.S. gold futures for February delivery also rose 0.2% to $2,041.00.
"Volatility in gold prices is likely to remain capped heading into Friday's U.S. non-farm payrolls data," said City Index Senior Analyst Matt Simpson.
"It might take a particularly weak set of numbers for gold to post strong gains from here – as many bullish fingers were likely burned with gold's false break to a record high."
Bullion climbed to a record high of $2,135.40 on Monday on elevated bets for a Fed rate cut, before dropping more than $100 in the same session, on uncertainty over the timing of the monetary policy easing.
Data on Tuesday showed U.S. job openings fell to a more than two-and-a-half year low in October, signalling that higher rates were dampening demand for workers.
The dollar index fell 0.1% against a basket of currencies after rising to a two-week high on Tuesday, making gold less expensive for other currency holders.
Focus now shifts to the Friday release of the November non-farm payrolls data that could provide more clues on U.S. interest rate outlook ahead of Fed's policy meeting next week.
Traders are pricing in about a 60% chance of a rate cut by March next year, CME's FedWatch Tool shows. Lower interest rates tend to support non-interest-bearing bullion.
Spot gold may bounce into a range of $2,033-$2,039 per ounce, as it has stabilized around a support of $2,009, according to Reuters technical analyst Wang Tao. [TECH/C]
Silver rose 0.5% to $24.24 per ounce, while platinum gained 0.1% to $900.31. Palladium rose 0.6% to $940.14 per ounce, hovering near a more than five year low.
