FX.co ★ Gold Trims Losses

Gold prices eased losses to approximately $4,060 per ounce on Friday, but the precious metal remained poised for a weekly decline as markets absorbed the impact of robust US labor data, dovish signals from central banks, and softer US yields. The Labor Department's delayed report indicated that nonfarm payrolls increased by 119,000 in September, while the unemployment rate edged up to 4.4%. This initially diminished the likelihood of an immediate interest rate cut by the Federal Reserve and bolstered the dollar. However, the minutes from the Fed's October meeting revealed a divided committee, leading to a reduction in earlier expectations for easing. Comments from the President of the New York Fed suggesting that a short-term move towards a neutral policy might be possible prompted the markets to reevaluate potential rate cuts, thereby driving benchmark yields lower. This shift removed a significant obstacle for gold. The yield on the US 10-year Treasury note decreased from its midweek highs and is now trading below 4.1%, reducing the opportunity cost of holding non-yielding bullion and supporting the gold rebound. Economic indicators remain mixed, with the S&P Global Flash Composite PMI indicating continued growth in November.