Gold Steadies As Traders Look To US Jobs Data For Rate-Cut Clues

Gold steadied, as traders weighed a stronger dollar and US economic data due Friday that will set the tone for interest-rate policy this year.

Bullion was near $4,465 an ounce, having risen 3.4% in the week through Thursday, and was facing some downward pressure after US initial jobless claims came in slightly lower than expected for the week ending Jan. 3. The Bloomberg Dollar Spot Index, a gauge of the US currency’s strength, has gained 0.5% this year, making gold more expensive for most buyers.

December jobs data due Friday will offer clues to whether the Federal Reserve will reduce interest rates again after three successive cuts in 2025. The nonfarm payrolls numbers are expected to show stronger hiring but unemployment should remain steady — conflicting signals that are unlikely to build urgency for the Fed to resume rate cuts, according to Bloomberg Economics.

Gold is fresh from its best annual performance since 1979, gaining around 65% last year and setting a series of records that peaked in late December at $4,549.92. The scorching rally was underpinned by central-bank buying and inflows to exchange-traded funds on the back of the so-called debasement trade. Lower borrowing costs — a tailwind for non-yielding precious metals — have also helped to power the metal’s run.

The imminent selection of a new Fed chair is also being closely watched by traders. Treasury Secretary Scott Bessent said he anticipates President Donald Trump will decide this month on a successor to Jerome Powell, whose term as central bank head will end in May. Four candidates are in the frame, Bessent said.

Gold edged down 0.2% to $4,466.93 an ounce as of 8:41 a.m. in Singapore. Silver slipped 0.8% to $76.37, having also fallen in the previous two sessions, though it remains on track for a weekly gain. Platinum and palladium fell.