Gold nudges higher as investors eye payrolls data

Gold prices edged up on Thursday, reclaiming some recent losses as investors looked ahead to U.S. jobs data that could shape the Fed’s policy path.

Spot gold (XAU/USD) rose 0.4% to $2,033.93/oz by late morning as a weaker dollar and falling Treasury yields boosted bullion’s appeal. Markets are now focused on Friday’s non-farm payrolls release, which will give fresh clues about the Fed’s interest rate plans at its Dec. 12 meeting.

Traders see a 60% chance of a rate cut by March, CME data shows, as recent economic weakness fans hopes that peaks are past. But a strong jobs figure could prompt profit-taking after gold’s gradual recovery from earlier plunges.

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“The NFP data is ultimately going to determine whether gold breaks record highs again or we see some correction,” said one analyst. For now, bullion appears to be in wait-and-see mode ahead of the pivotal numbers.