Mumbai, 4 Sep (Commoditiescontrol): Gold prices remained stable on Wednesday as investors awaited the upcoming U.S. payrolls report, which could impact the Federal Reserve's decision on the size of an expected interest rate cut this month. Spot gold held firm at $2,493.62 per ounce, while U.S. gold futures inched up 0.1% to $2,524.90.
The U.S. non-farm payrolls report, due on Friday, is forecasted to show a 160,000 increase in jobs for August, with the unemployment rate potentially dipping to 4.2%, according to economists surveyed by Reuters. Traders are currently anticipating a 38% chance of a 50-basis-point rate cut by the Federal Reserve on September 18, while a 62% likelihood is placed on a smaller 25-basis-point cut, based on the CME Group's FedWatch Tool.
Tuesday's data indicated that U.S. manufacturing continued to contract in August, albeit at a moderate pace. While there was some improvement in employment, a decline in new orders and a rise in inventories suggested that factory activity might remain subdued.
Last month, Federal Reserve Chair Jerome Powell stated that with inflationary pressures easing and the labor market cooling, the time has come to reduce borrowing costs. A lower interest rate environment tends to enhance the attractiveness of non-yielding assets like gold.
Investors are also closely monitoring U.S. job openings data, as well as the ADP employment report and jobless claims figures, which are set to be released later this week.
Gold is on track for its best performance since 2020, fueled by optimism over potential U.S. rate cuts and ongoing concerns about geopolitical tensions, particularly in the Middle East. In recent developments, Israeli forces reportedly killed at least 35 Palestinians in Gaza on Tuesday during clashes with Hamas-led militants.
In other precious metals, spot silver was unchanged at $28.04 per ounce, platinum rose 0.4% to $906.55, and palladium increased 0.6% to $943.60.
(By Commoditiescontrol Bureau: 09820130172)
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