Gold gains as attention turns to US payrolls data

Gold prices edged higher on Tuesday on optimism that the U.S. Federal Reserve will cut interest rates this month as attention shifted to upcoming jobs data which could provide more insights into the size of rate cuts, reports Reuters.
Spot gold rose about 0.2 per cent to $2,504.02 per ounce by 0928 GMT, having hit more than one-week low in the last session on a firmer dollar. U.S. gold futures rose 0.3 per cent to $2,535.90.
The (gold) market is torn a little bit between the debate in the U.S. on "how strong is the Fed going to cut (interest rates) in September and in the following two meetings," said Quantitative Commodity Research analyst Peter Fertig.
Traders currently see a 31 per cent chance of a 50 basis point rate cut at the Fed's Sept. 17-18 policy meet and a 69 per cent chance of a quarter point cut.
Investor's focus has now shifted to Friday's U.S. payrolls report in particular as ISM surveys, JOLTS job openings and ADP employment report are also on traders' radar for clues on the Fed's rate cut path.
"The labour market seemed to be now concerned a little bit more about the unemployment rate after it had risen strongly in the last two months. Whether this has also been the case for August, that is the crucial question," Fertig added.
Bullion, traditionally known for its stability as a favoured hedge against geopolitical and economic risks, thrives in a low-interest rate environment.
Goldman Sachs in a note said gold stands out as the commodity where the bank has the highest confidence in near-term upside.
Bullion has gained 21 per cent so far this year, breaking successive records and hitting a historic high of $2,531.60 per ounce on Aug. 20.
Spot silver dipped 0.5 per cent to $28.36, platinum fell about 1 per cent to $921.10 and palladium lost 1.2 per cent to $967.00.