FX.co ★ Gold Strugles for Direction

Gold prices remained steady at approximately $3,980 per ounce on Thursday, maintaining gains observed in the previous session. This stability is attributed to concerns surrounding the US labor market, which have increased the likelihood of Federal Reserve policy easing and subsequently decreased the opportunity cost of holding gold, a non-yielding asset. In October, private payrolls reported a modest increase of 42,000 jobs. However, this was overshadowed by the announcement of job cuts, which reached the highest October level in over 20 years. This combination of factors contributes to a narrative of weakening payroll momentum. Furthermore, the ongoing US government shutdown has heightened the significance of private-sector data and political risks. Nonetheless, recent indications from the Supreme Court regarding tariffs, as well as the potential reduction in trade tensions, have decreased another source of safe-haven demand and compressed risk premiums that could have further bolstered gold prices. Consequently, the future trajectory of gold will hinge on whether the labor market developments continue to alleviate the Federal Reserve's hawkish stance sufficiently to counterbalance the diminished risk premiums.