XAU/USD has maintained its ‘green’ momentum since the opening of the week as the broader market gained momentum amid cautious sentiment and uncertainty over the US economy.
For now, investors will be closely monitoring the important September Non-Farm Payrolls (NFP) report due out at 9:30 tonight (Thursday).
At 9:10 am, gold was at $4,101, up 0.57% since it opened in early trading on Thursday in the Asian session.
A weaker-than-expected report could increase the likelihood of a December rate cut and lift the yellow metal. Lower interest rates could reduce the opportunity cost of holding gold, supporting the precious metal to rise higher.
In addition, the increasingly subdued expectations of a Fed rate cut continue to add to selling pressure on gold. The minutes of the FOMC meeting on October 28-29 signaled a cautious tone as Fed officials remained divided on their outlook for further monetary policy.
Although the committee members overwhelmingly agreed to ease policy by 25 basis points at the September meeting, the decision was still not unanimous and the market is now setting a confidence level of 30% for the chances of a December rate cut.
