Gold Holds Steady as Dollar Weakens Ahead of US Jobs Report

Gold prices firmed as the dollar weakened ahead of the release of U.S. non-farm payrolls data, with traders hoping for signs of a weaker labor market that could increase the likelihood of a rate cut by the Federal Reserve as early as March. The market is pricing in a 62% chance of a rate cut by March, but a Reuters poll suggests rates will remain unchanged until at least July. Lower interest rates tend to support gold prices, and while there are expectations for a soft landing in the U.S., geopolitical tensions and central bank buying could still support gold in 2024.