Spot Gold traded in proximity to an all-time high of $2,685.64 per troy ounce on Friday, as it drew support from its safe-haven status amid heightened Middle East tensions.
Yesterday US President Joe Biden abstained from directly condemning the potential for Israel to target Iran, while Tel Aviv had pledged to retaliate against the Islamic nation.
Investors now await the key US Non-Farm Payrolls report for more insight into macroeconomic conditions and the Fed’s future interest rate trajectory.
Employers in all sectors of the US economy, excluding farming, probably added 140,000 job positions in September, according to market consensus, following a job growth of 142,000 in August.
According to Kieran Williams, head of Asia FX at InTouch Capital Markets, a stronger-than-expected NFP report could be considered as dovish, since it would drive the unemployment rate in line with the Federal Reserve’s year-end projection.
“This may prompt some officials to consider a 50bp rate cut in November,” Williams noted.
Markets are now pricing in about a 33% chance of another 50 basis point rate cut at the Fed’s policy meeting in November, compared to a 49% chance a week ago.
As of 7:06 GMT on Friday Spot Gold was edging up 0.14% to trade at $2,659.75 per troy ounce.
Gold Futures for delivery in December were little changed on the day to trade at $2,678.90 per troy ounce.
The US Dollar Index, which reflects the relative strength of the greenback against a basket of six other major currencies, was inching down 0.08% to 101.858 on Friday. The DXY held not far from a six-week peak of 102.099.
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