Mumbai, 07 Dec (Commoditiescontrol): Gold prices edged higher on Friday after U.S. labor market data for November pointed to a gradual easing of job growth, reinforcing expectations of another Federal Reserve interest rate cut.
Spot gold rose 0.2% to $2,636.31 per ounce, while U.S. gold futures settled 0.4% higher at $2,659.60.
The U.S. economy added 227,000 nonfarm payrolls in November, surpassing expectations of 200,000, following an upwardly revised increase of 36,000 in October. While job growth surged, analysts believe the data reflects a steady cooling in labor market conditions, allowing the Fed to maintain its dovish trajectory.
The report led to a decline in both the U.S. dollar and Treasury yields, bolstering gold’s appeal. Lower interest rates tend to support gold prices, as the metal offers no yield, making it more attractive in a low-rate environment.
The Federal Reserve is widely anticipated to cut rates at its December meeting, with traders assigning an 87% probability to a 25-basis-point reduction, up from 72% before the release of the payrolls report. The prospect of further rate cuts has driven gold's record-breaking rally this year, as investors seek refuge in the precious metal amid easing monetary policy.
While gold gained, other precious metals faced downward pressure. Spot silver fell 1.1% to $31 per ounce but recorded weekly gains. Platinum eased 1.3% to $925.78, and palladium slipped 0.5% to $957.83, with both metals set for a second consecutive weekly decline.
As the Federal Reserve prepares for its upcoming policy meeting, the interplay between economic data and rate expectations will remain a key driver for the precious metals market. Investors continue to monitor labor market trends and inflation dynamics for clues on the Fed's next moves.
(By Commoditiescontrol Bureau: 09820130172)
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