Spot gold held its ground at $4,477.10 per ounce as of 0211 GMT on Friday, after a 2% jump on Thursday when expectations for a September Fed rate hike eased following comments from Fed Governor Christopher Waller.
U.S. gold futures for December delivery slipped 0.4% to $4,522.60, while traders priced in about a 50% chance of a Fed rate hike later this month according to the CME FedWatch Tool.
The U.S. nonfarm payrolls report is due at 1230 GMT. Ross Maxwell, global strategy operations lead at VT Markets, warned that weak figures and a rise in unemployment could weaken the case for a rate hike, potentially allowing gold to recover, though the metal could remain exposed to changing sentiment with upcoming inflation data releases.
Data released Thursday showed a marginal rise in Americans filing unemployment claims amid low layoffs, indicating a stable labour market. Meanwhile, U.S. Vice President JD Vance stated that the U.S.-Iran fighting was not a war and declined to give a timeline for its end, highlighting the challenges facing the Trump administration as hostilities enter their seventh month and midterm elections approach.
Other metals moved lower: spot silver fell 0.3% to $66.78 per ounce, platinum dropped 0.8% to $1,811.28, and palladium declined 0.4% to $1,415.75, all on track for slight weekly declines.
Investors will watch the payrolls data closely, as it could influence the Fed’s next rate decision and the direction of gold and other non‑yielding assets.
