Gold prices held steady on Wednesday (December 3), boosted by weak private payrolls data that reinforced expectations of a US interest rate cut next week, while silver hit a new record high.
Spot gold was little changed at $4,202.06 an ounce at 2:03 PM ET (19:03 GMT), after hitting a session high of $4,241.29 earlier in the session.
U.S. gold futures for February delivery closed 0.3% higher at $4,232.50. Silver held steady after hitting a record high of $58.98 earlier in the session.
"The ADP data miss this morning, coupled with silver hitting an all-time high overnight," is supporting gold, said Bob Haberkorn, senior market strategist at RJO Futures. "Gold is following silver's lead right now, with silver slightly weaker here."
US private sector employment fell by 32,000 jobs in November, according to the ADP employment report released Wednesday, missing economists' expectations for a 10,000-job increase. The CME FedWatch tool now shows an 89% chance that the US central bank will cut interest rates next week, while several major brokerages also predict a rate cut at its December 9-10 policy meeting.
The market is still awaiting the delayed September Personal Consumption Expenditures data, the Fed's preferred inflation measure, due on Friday. Lower interest rates tend to benefit non-yielding assets like gold.
Silver is up 102% year-to-date on concerns about market liquidity following outflows into US stocks, its inclusion on the US critical minerals list, and a structural supply deficit.
"Silver's rally is driven by supply concerns at the exchange rate level," Haberkorn said, adding that the metal could soon reach $60/oz.
Copper prices also hit a record high on Wednesday due to a weaker dollar, supply concerns, and limited metal availability in warehouses listed on the London Metal Exchange.
Elsewhere, platinum rose 0.9% to $1,652.03 an ounce, and palladium gained 0.4% to $1,466.98. (alg)
Source: Reuters.com
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