Gold prices edged higher on Tuesday, supported by a softer dollar, as investors awaited the release of key U.S. jobs data that could shape expectations for the Federal Reserve’s policy path in the new year.
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Gold prices rose on Tuesday as investors analyzed a U.S. jobs report that showed the unemployment rate rose last month from September, reinforcing bets of rate cuts by the U.S. Federal Reserve and sending the dollar index lower.
Spot gold gained 0.4% to $4,316.67 per ounce. U.S. gold futures were up 0.3% at $4,347.10.
The U.S. dollar (.DXY), opens new tab fell to a two-month low, making greenback-priced bullion more affordable for overseas buyers. Benchmark 10-year U.S. Treasury yields also edged lower.
U.S. job growth rebounded in November after nonfarm payrolls declined in October, but the unemployment rate was at 4.6% in the backdrop of economic uncertainty stemming from President Donald Trump’s aggressive trade policy. A Reuters survey of economists had estimated an unemployment rate of 4.4%.
“(The) data gives the Fed more reason to cut rates and if they cut rates, that’s bullish for gold … that’s the way the market’s interpreting it right now,” said RJO Futures senior market strategist Bob Haberkorn.
Last week, the Federal Open Market Committee had announced a quarter-point rate cut, and Chair Jerome Powell’s accompanying comments were perceived as less hawkish than expected.
Chances of a January rate cut went up to 26.6% after the data, from 24.4% earlier, according to CME’s FedWatch tool.
U.S. rate futures still expect two cuts of 25 basis points each in 2026, pricing in 59 bps of easing next year. Non-yielding gold tends to thrive in a low-interest rate environment.
Investors now look ahead to November’s Consumer Price index, due on Thursday, and Personal Consumption Expenditures index, scheduled to release on Friday.
Spot silver fell 0.6% to $63.58 an ounce, retreating from a record high of $64.65 on Friday.
Platinum added 2.3% to $1,824.50, its highest level since September 2011, while palladium edged 0.8% up to $1,580.22, hitting a two-month high.
