By Brijesh Patel
(Reuters) -Gold prices rose on Wednesday as broader risk aversion lifted demand, while investors awaited minutes from the Federal Reserve’s latest policy meeting and a delayed U.S. jobs report for clues on the central bank’s interest rate trajectory.
Spot gold was up 0.5% at $4,089.59 per ounce, as of 0633 GMT. U.S. gold futures for December delivery gained 0.6% to $4,090.30 per ounce.
Investors now await minutes from the Fed’s latest meeting, which will be released later in the day, as well as the September non-farm payrolls report, due on Thursday after being delayed by the recent U.S. government shutdown.
Economists polled by Reuters expect the report to show that employers added 50,000 jobs in September.
Data showed on Tuesday that the number of Americans receiving unemployment benefits stood at a two-month high in mid-October.
“Gold has somewhat had its momentum thwarted by the stronger USD and doubts about when the next Fed rate cut may arrive,” KCM Trade Chief Market Analyst Tim Waterer said.
“However, a bout of risk aversion in the market has kept gold in the frame for investors as a safety play, which has limited the slide.”
The dollar held firm against its rivals. A stronger dollar makes gold more expensive for other currency holders. [USD/]
Global equity markets have turned sharply negative this week, with the S&P 500 on a four-day losing streak on concerns about valuations of AI stocks. [MKTS/GLOB]
Last month, the U.S. Fed lowered interest rates by 25 basis points, but Chair Jerome Powell signalled caution over another rate cut this year, in part due to the lack of data.
Traders now see nearly a 49% chance for a rate cut at the Fed’s December 9-10 meeting, CME Group’s FedWatch tool showed.
Non-yielding gold tends to do well in a low-interest-rate environment and during times of economic uncertainties.
Elsewhere, spot silver rose 1.3% to $51.33 per ounce, platinum added 0.5% to $1,542.17, and palladium climbed 0.8% to $1,411.86.
(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips)
