Gold slips as hopes for bigger US rate cut dim

Gold prices fell on Thursday as US economic data tempered expectations of an aggressive rate cut in November, while investors awaited the upcoming payrolls report for more clarity on the Federal Reserve's monetary policy easing plans, reports Reuters.

Spot gold was down 0.5 per cent at $2,645.38 per ounce by 1125 GMT, after hitting a record high of $2,685.42 last week.

US gold futures shed 0.2 per cent to $2,665.70.

US private payrolls increased more than expected in September, evidence that labor market conditions were not deteriorating, according to data on Wednesday.

Richmond Federal Reserve President Thomas Barkin said the fight to return inflation to the central bank's 2 per cent target may take longer than expected and limit how much rates can be cut.

Bets of a 50-basis-point rate cut in November fell to 34 per cent from 49 per cent last week, according to the CME FedWatch tool.

Market focus is now on the US non-farm payrolls report on Friday.

"A weak data print or uptick in unemployment could extend the upper end of the range for gold toward $2,700. It will all depend on how weak the data is and its impact on rate cut expectations," said Vawda.

Spot silver fell 1.3 per cent to $31.46, platinum dropped 1.7 per cent to $985.25 and palladium slipped 2.2 per cent to $991.79.