Gold prices steady as markets await key US jobs data

Gold prices steadied on Wednesday as markets awaited more jobs data and comments from Federal Reserve Chair Jerome Powell for further clarity on the U.S. rate outlook.

FUNDAMENTALS

* Spot gold held its ground at $2,640.42 per ounce, as of 0057 GMT. U.S. gold futures edged 0.2% lower to $2,662.50.

* Traders’ attention has now turned to the upcoming ADP employment report, scheduled for release at 1315 GMT, as well as Powell’s speech later in the day. This comes ahead of the highly anticipated U.S. payrolls report on Friday.

* U.S. job openings increased moderately in October while layoffs declined, data showed on Tuesday. * According to the CME Group’s FedWatch Tool, markets currently see about 73% chance of a 25-basis-point reduction by the Fed this month.
* Lower rates boost the appeal of holding the non-yielding asset.
* U.S. central bankers signalled support for further interest rate cuts ahead, but none pushed strongly for or against doing so when they next meet to set rates in two weeks. Officials have been wary of giving too much guidance about how policy is likely to evolve, particularly since President-elect Donald Trump’s victory in the U.S. election last month.
* On the geopolitical front, South Korean President Yoon Suk Yeol said he would lift a surprise martial law declaration he had imposed just hours before, backing down in a standoff with parliament, which roundly rejected his attempt to ban political activity and censor the media.

* Spot silver fell 0.2% to $30.96 per ounce, platinum dropped 0.6% to $947.45 and palladium shed 0.5% to $967.58.

DATA/EVENTS (GMT)

0030 Japan JibunBK Comp Op Final Nov 0030 Japan JibunBK Comp Op Final SA Nov 0030 Japan JibunBK SVC PMI Final SA Nov 0145 China Caixin Servics PMI Nov 0850 France HCOB – Services PMI Nov 0850 France HCOB Composite PMI Nov 0855 Germany HCOB Services PMI Nov 0855 Germany HCOB Composite Final PMI Nov 0900 EU HCOB Services Final PMI Nov 0900 EU HCOB – Composite Final PMI Nov 0930 UK S&P Global PMI: Composite Output Nov 0930 UK Reserve Assets Total Nov 1455 US S&P Global Comp Final PMI Nov 1445 US S&P Global Svcs PMI Final Nov 1500 US Factory Orders MM Oct 1500 US ISM N-Mfg PMI Nov.