Gold rose on Wednesday (November 19) as investors sought safe-haven assets, with attention focused on the Federal Reserve's minutes from its last meeting and the pending US employment report for clues on future interest rate moves.
Spot gold rose 0.5% to $4,088.03 an ounce, as of 09:15 GMT. US gold futures for December delivery rose 0.5% to $4,087.90 an ounce. "After rebounding from the psychological $4,000 level in the previous session, gold is showing some sparkle this morning amid cautious sentiment," said Lukman Otunuga, senior research analyst at FXTM.
Investors are eyeing the Federal Reserve's October meeting minutes, due later today, and the pending September employment report, due on Thursday.
Economists polled by Reuters expect the September employment report to show 50,000 new jobs during the month. "If incoming US data supports the argument for lower interest rates, gold prices could push towards $4,130 and $4,200. However, more aggressive statements from Fed officials, coupled with stronger-than-expected data, could drag prices back towards $4,000 as traders trim expectations for lower US interest rates," Otunuga said.
Separately, data showed on Tuesday that the number of Americans receiving unemployment benefits hit a two-month high in mid-October.
The Fed meeting minutes are expected to shed light on the division among policymakers on how to respond to inflation and shifting employment trends.
Traders reduced their bets for a rate cut next month to just over 46% from 63% last week, according to the CME FedWatch tool.
Non-yielding gold tends to perform well in low-interest-rate environments and during times of economic uncertainty.
Weak employment data could fuel a gold rally, while stronger data and signs of labor market resilience could weigh on prices and lead to a potential break below the key psychological support level of $4,000 per ounce, said Zain Vawda, analyst at MarketPulse by OANDA.
Elsewhere, spot silver rose 1.5% to $51.44 per ounce, platinum rose 0.7% to $1,544.72, and palladium rose 1% to $1,414.68. (alg)
Source: Reuters.com
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