Gold prices steadied on Friday, holding gains after a three-day rally fueled by softer U.S. economic data. Investors are now closely watching the upcoming US nonfarm payrolls report, which is expected to provide crucial insights into the Federal Reserve’s next policy steps. Spot gold remained near $1,925 per ounce, with markets in a cautious stance ahead of the report.
A weaker-than-expected ADP employment report earlier this week bolstered gold’s appeal as a safe-haven asset, suggesting the labor market may be cooling. This shift has raised expectations that the Fed may pause further rate hikes, a sentiment that typically supports non-yielding assets like gold. The dollar index also remained subdued, providing additional tailwinds for the precious metal.
With traders looking for confirmation of economic softening, the payroll data could determine whether gold extends its rally or faces renewed pressure.
