By Daksh Grover
(Reuters) – Gold prices were trading in a tight range on Thursday as traders remained on the sidelines ahead of a key U.S. economic data that may provide clues about the size of the Federal Reserve’s interest rate cuts expected later this year.
Spot gold was flat at $2,655.03 per ounce by 0333 GMT. Prices hit a record high of $2,685.42 on Sept. 26.
U.S. gold futures gained 0.2% to $2,675.40.
Gold is consolidating at this point of time but expect prices will retest the all-time high of $2,685 as charts show persistent strong upward trends, said Brian Lan at Singapore-based dealer GoldSilver Central.
Investors are watching out for the ISM services data and the initial jobless claims, due later in the day, along with the U.S. non-farm payroll data expected on Friday.
Data on Wednesday showed that U.S. private payrolls increased more than expected in September – further evidence that labour market conditions were not deteriorating.
Expectations of another 50-basis-points rate cut at the Fed’s November meeting have dipped, with markets currently pricing in a 36% chance, down from 57% last week, according to CME’s FedWatch Tool.
Gold tends to thrive in a low interest rate environment and political turmoil.
“Middle East tensions and U.S. elections will continue supporting bullion in the longer term… In the short-tem, some funds might shift to oil from gold since oil is doing better,” Lan added. [O/R]
Israel bombed central Beirut, killing at least six, after its forces suffered the deadliest day on the Lebanese front in a year of clashes against Iran-backed armed group Hezbollah.
Elsewhere, Perth Mint’s gold product sales touched a 10-month high in September, while silver sales hit a seven-month high.
Spot silver fell 0.9% to $31.58, platinum shed 0.5% to $997.90 and palladium lost 1.3% to $1,001.80.
(Reporting by Daksh Grover in Bengaluru; Editing by Alan Barona and Sumana Nandy)
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