Gold ticks higher after labor report, more U.S. data eyed

Gold prices rose modestly on Tuesday after a strong U.S. labor report, while a softer dollar and easing Treasury yields limited losses as markets awaited more economic data to gauge the Federal Reserve’s rate path.

Spot gold ticked up 0.2% to $2,665 per ounce. Prices were up as much as 0.7% before the U.S. job openings data. U.S. gold futures rose just 0.1% to $2,642.45.

Bullion trimmed earlier gains as “the JOLTS data confirms our expectations of a rebound in the job market, which eases fears of a significant slowdown in labor markets ahead of Friday’s non-farm payrolls report,” said Daniel Ghali, commodity strategist at TD Securities.

A strong jobs report could lead the Fed to take a cautious stance on cutting interest rates. Investors’ focus turns to the ADP employment report and Fed Chair Jerome Powell’s speech on Wednesday, ahead of Friday’s payrolls report.

Traders are currently pricing in a 69% chance of a 25-basis-point December rate cut.

The 10-year Treasury yield dropped to more than a month’s low, and the dollar was also down 0.2%, limiting losses in bullion.

Analysts at JPMorgan and HSBC highlighted gold’s role as a hedge against geopolitical uncertainty, noting that elevated global tensions and conflicts have boosted its appeal.

They emphasized that President-elect Trump’s policies could further heighten geopolitical risks, potentially benefiting gold as a safe-haven asset heading into 2025.

“We believe gold’s post-election sell-off was a positioning-driven stumble, not a sea change,” JP Morgan noted, forecasting prices could climb toward $3,000/oz in 2025 as physical demand and less frothy futures positioning will set the stage for further price gains in 2025.

Gold, which does not pay any interest, historically performs well in low-interest rate environments and during periods of geopolitical uncertainty.

Spot silver added 1.2% to $30.89 per ounce, platinum rose 0.9% to $955.25 and palladium was down 0.8% at $973.50.