Gold rises with the decline in dollar strength and anticipation of US jobs data

Gold prices rose on Thursday as the dollar fell as investors looked to US jobs data that will be released later this week and may provide new clues on the Federal Reserve’s path on interest rates.

Gold rose 0.3 percent to $2,030.20 an ounce by 0748 GMT. US gold futures settled at $2,047.10 an ounce.

The dollar index fell 0.3 percent against competing currencies, making gold less expensive for holders of other currencies, while ten-year Treasury bond yields hovered near their lowest levels in three months.

US data released this week showed signs of a gradual slowdown in the US labor market, with employment opportunities falling to the lowest level in two and a half years in October, while private sector jobs increased less than expected last month.

Investors are awaiting non-farm payrolls data in the United States, which will be released on Friday, before the Federal Reserve updates its economic forecasts and interest rates at its monetary policy meeting scheduled for December 12-13.

According to the CME Group’s FeedWatch service, about 60 percent of traders expect interest rates to fall by March 2024. Low interest rates support gold, which does not generate a return.

As for other precious metals, silver settled at $23.87 per ounce. Platinum rose 0.5 percent to $894.03. Palladium rose 0.7 percent to $950.42 an ounce.