Gold prices held steady around $2,640 per ounce on Wednesday, facing pressure from a strengthening US dollar and rising Treasury yields.
Gold steady amid US data and policy uncertainty
This came after a jump in US job openings, signaling resilience in the labor market. Additionally, the latest ISM services data showed increased activity and higher prices, stoking concerns about persistent inflation and diminishing expectations for significant rate cuts by the Federal Reserve. These factors further weighed on gold, as lower interest rates typically benefit non-yielding assets like the precious metal.
However, gold found some support earlier in the week amid uncertainty over tariff policies ahead of President-elect Trump’s inauguration.
PBoC buys gold, traders focus on US jobs data
Moreover, the People's Bank of China added gold to its reserves for the second consecutive month, according to official data. Traders are now closely watching upcoming US jobs data, including the nonfarm payroll report and the latest FOMC minutes, for more insights into potential policy shifts.
