Gold steadies ahead of U.S. jobs data as fed rate cut bets grow

September 05, 2025 (MLN): Gold spot prices increased by 0.41% ($14.75) at $3,548.68 per ounce, as of [4:33 pm PST]

Gold prices rose on Friday, heading for their strongest weekly advance in three months, as growing expectations of a Federal Reserve rate cut lifted the metal’s appeal while investors looked ahead to the release of U.S. non-farm payrolls data later in the day.

Initial jobless claims in the United States came in higher than anticipated last week, while the ADP National Employment Report indicated private sector hiring in August fell short of expectations both reinforcing signs of a slowing labor market.

Markets are now awaiting the release of the U.S. non-farm payrolls data at 1230 GMT.

Saxo Bank’s head of commodity strategy, Ole Hansen, noted that the trajectory of gold in the near term will largely depend on the payrolls outcome and how it shapes expectations for Federal Reserve policy, as well as movements in bond yields and the dollar.

He added that weaker-than-expected data could push gold toward $3,650, while the $3,450–$3,500 range remains a crucial support zone.

Earlier this week, several Fed officials flagged employment concerns as strengthening the argument for easing monetary policy.

Traders broadly anticipate the central bank will initiate its first rate cut of the year a 25 basis point reduction, when it concludes its September 17–18 policy meeting.

Gold, which set a fresh all-time high of $3,578.50 on Wednesday, typically thrives in lower interest rate environments as it does not yield interest.

Hansen emphasized that a backdrop of reduced borrowing costs, lingering geopolitical tensions, doubts about Fed independence, a steeper yield curve, and a weaker dollar all continue to support the precious metals outlook.

Elsewhere in the market, spot silver gained 0.2% to $40.76 per ounce, on track for a third consecutive weekly rise. Platinum advanced 1% to $1,381.17, while palladium slipped 0.7% to $1,119.23.

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