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Gold prices pushed higher during Friday trading as market participants positioned themselves ahead of the crucial US non-farm payrolls report. December gold futures rose 0.35% to $4,217.7 per ounce, while spot gold ticked up 0.25% to $4,187.64 per ounce. The move was supported by a mild pullback in the US dollar index, which dropped 0.20% to 101.92 points, although the dollar remained on track to capture a overall weekly gain as traders recalibrated interest rate expectations.
The upcoming employment data is critical for shaping expectations around the Federal Reserve's monetary policy path. Market pricing for a rate hike this month has dropped sharply to just 28%, down from roughly 70% earlier in the week, though investors still see an 82% probability of policy tightening by December. Forecasts indicate US job creation slowed to 89,000 in September from 162,000 in August, while unemployment and wage growth rates are projected to remain steady.
For precious metals, lower expected rate hikes serve as a tailwind by reducing the opportunity cost of holding non-yielding bullion. Investors should closely monitor the incoming labor data as significant deviations from forecasts will likely ignite volatility across commodity and currency markets.
