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Gold Steadies as US Jobs Data Offer Few Clues on Fed’s Rate Path - BLOOMBERG
(Bloomberg) -- Gold was steady in quiet, post-holiday trading, after mixed jobless claims data in the US did little to alter bets on the outlook for Federal Reserve interest rate cuts.
Bullion was near $2,633 an ounce, after rising 0.6% on Thursday, following a report that showed recurring applications for US unemployment benefits rose to the highest in more than three years — suggesting that it’s taking longer for out-of-work people to find a job. Initial claims, however, ticked down.
Speaking after the Fed’s final policy meeting of 2024, Chair Jerome Powell last week reiterated that the labor market was cooling in a way that doesn’t raise concerns. The US central bank reined in the number of rate cuts expected in 2025, as Powell emphasized the need to see inflation ease further. Lower borrowing costs are typically positive for bullion, which doesn’t pay interest.
The precious metal has hit successive records this year and is on course to close 2024 some 28% higher. Prices have been lifted by US monetary easing, haven demand and buying by central banks, but the rally has recently slowed after the dollar strengthened following the election of Donald Trump.
Spot gold was little changed at $2,633.17 an ounce at 8:25 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat. Silver was steady, while both palladium and platinum edged higher.
