Gold prices edged higher on Wednesday as the dollar eased and weaker-than-expected US jobs data cemented expectations that the Federal Reserve’s policy tightening cycle has come to an end.
Spot gold rose 0.2 percent at $2,023.39 per ounce. US gold futures for February delivery also rose 0.2 percent to $2,041.00.
“Volatility in gold prices is likely to remain capped heading into Friday’s US non-farm payrolls data,” said City Index Senior Analyst Matt Simpson.
“It might take a particularly weak set of numbers for gold to post strong gains from here — as many bullish fingers were likely burned with gold’s false break to a record high.”
Bullion climbed to a record high of $2,135.40 on Monday on elevated bets for a Fed rate cut, before dropping more than $100 in the same session, on uncertainty over the timing of the monetary policy easing.
Data on Tuesday showed US job openings fell to a more than two-and-a-half year low in October, signaling that higher rates were dampening demand for workers.
