Gold (XAU/USD) posted modest gains on Thursday, despite the latest US jobs data showing that the labor market remains resilient, albeit with signs of easing emerging. High expectations that the Federal Reserve (Fed) will cut interest rates kept bullion prices supported, with XAU/USD trading at $4,212, up 0.25% at the time of writing.

The mixed US jobs data kept rate cut speculation high, helping bullion extend its gains despite signs of a stabilizing labor market.

Market sentiment was mixed after the release of the latest US economic data showed the labor market weakening, but not as rapidly as economists had expected. The Challenger Jobs Cut report, along with the number of Americans filing for unemployment benefits, reported mixed readings. The Challenger Jobs Cut reached the highest level of layoffs for November since 2022, while jobless claims reached the lowest level since September 2022, when they reached 189,000.

Interest rate cut expectations remain high, with an 85% chance of a quarter-percentage-point rate cut by the Fed at next week's meeting.

These odds increased after Wednesday's dismal ADP National Employment Change report, which showed that private employers cut 32,000 jobs last month.

A Reuters poll revealed that economists expect a rate cut at the December meeting, which bodes well for gold prices, which tend to benefit from low interest rates.

Looking ahead, traders are eyeing the release of the Fed's preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index for September. (alg)

Source: FXstreet