On November 3, gold prices saw an increase as the US dollar and Treasury yields weakened following disappointing US jobs data, reinforcing expectations that the Federal Reserve is unlikely to raise interest rates further.
Spot gold rose by 0.4% to $1,992.49 per ounce, reaching a session high of $2,003.69.
U.S. gold futures also gained, up 0.3% to $2,000.10.
The US job market exhibited slower growth in October, with wage inflation cooling. Employers added 150,000 jobs, falling short of the 180,000 expected by economists. This data supports the notion of the Federal Reserve pausing its tightening policy, which is positive for gold.
Furthermore, the dollar index fell by 1%, and 10-year U.S. Treasury yields dropped to over a one-month low following the data. Traders are now pricing in a 95% chance that the Fed will keep interest rates unchanged in December.
Gold’s price has reached a significant psychological barrier at $2,000, and while momentum indicators suggest potential challenges, it remains a point of interest for investors.
The ongoing Middle East conflict continues to be a factor affecting gold prices, with the precious metal having risen more than 7% in October due to safe-haven demand.
Spot silver increased by 1.9% to $23.17 per ounce, while platinum rose by 1.5% to $934.15, and palladium climbed by 2% to $1,121.59.
Tai Wong, a New York-based independent metals trader, noted that while peace isn’t likely to break out in the Middle East, the situation might not escalate into a regional conflict in the short term. Given gold’s recent strong performance, there could be some consolidation or even a modest retracement.