Gold remains range-bound: Markets await US payrolls data – London Business News | Londonlovesbusiness.com

Gold has remained within a range since last week as investors adopt a cautious approach ahead of today’s U.S. nonfarm payrolls report.

The data release might trigger a return to volatility for the yellow metal, as the NFP has significant influence on the Federal Reserve’s upcoming policy decisions.

Markets are currently pricing in a 68.5% probability of a 25-basis-point rate cut. Gold may benefit from weaker-than-expected employment figures, while stronger data could limit any significant upside for the precious metal.

Recent comments from key FOMC members, including Federal Reserve Chair Jerome Powell, suggest that while rate cuts are anticipated, the central bank remains cautious about their timing.

This, along with concerns over potential inflationary pressures from Trump’s proposed tax and tariff policies, could result in elevated interest rates for an extended period, which may weigh on gold. However, several factors continue to support gold’s stability.

Geopolitical tensions across various global regions increase safe-haven demand, and concerns about the potential impact of proposed trade tariffs on global economic growth sustain interest in safe-haven assets, as heightened trade war risks reduce appetite for riskier investments.