Gold Subdued Ahead of US Jobs Report

Gold was little changed on Friday as markets looked ahead to the August US jobs report, even after bullion posted a strong gain in the previous session. The metal remained on course for a modest weekly advance as traders adjusted expectations for a Federal Reserve rate increase later this month.

Fed expectations cool

Spot gold slipped 0.2% to $4,466.31 an ounce, while US gold futures fell 0.7% to $4,510.39 an ounce. The dollar index was steady, leaving bullion to trade mainly on rate expectations and incoming labor-market data. After climbing 2% on Thursday, gold held most of its recent advance.

Traders have recently pared back bets on a September rate hike after Federal Reserve Governor Christopher Waller argued for keeping policy unchanged at the upcoming meeting. That shift in expectations has supported non-yielding assets such as gold, which tends to benefit when borrowing costs are seen falling or staying lower for longer.

Jobs data and geopolitical risk

Attention was also fixed on the monthly employment report due later in the day. Economists were looking for payrolls to rise by 55,000 in August after a decline of 23,000 in July, with the unemployment rate expected to edge up to 4.2% from 4.1%. The figures are likely to influence how firmly markets price the Fed’s next move.

Beyond monetary policy, investors kept watch on the Middle East, where worries about supply disruptions remained elevated. Brent crude futures were slightly lower on the day but still more than 8% higher for the week amid renewed US-Iran hostilities and concern over shipments through the Strait of Hormuz.

Iran said it carried out retaliatory strikes on US bases in Kuwait and the United Arab Emirates for a second straight day, while President Donald Trump said Washington can attack Iran “anytime we want.” US Vice President JD Vance ruled out talks until Iran stops targeting commercial shipping in the strait, saying all options remain open. The mix of geopolitical tension and policy uncertainty has left gold supported even as traders wait for a clearer signal from the labor market.

This article is not investment advice and recommends no asset, level or direction; a single session's move is not evidence of a trend. For background see Currency, Cross Rate, Currency Pair, and for terms the finance glossary.