Gold Rises Amid Anticipation of Fed Minutes and US Jobs Report

SadaNews Economy - Gold prices shifted to rise on Wednesday as investors awaited the minutes of the Federal Reserve's last meeting and the US jobs report, which may provide additional indicators regarding the future path of interest rates.

Gold rose in spot transactions by 0.6% to $4094.67 per ounce, while December futures contracts for gold increased by 0.5% to $4090.50 per ounce.

Tim Waterer, the chief market analyst at KCM Trade, told Reuters, \"The momentum driving gold has been somewhat affected by the rise of the dollar and the uncertainties surrounding the timing of the Fed's next rate cut.\"

He added, \"Nevertheless, the wave of risk aversion in the market has kept gold in the spotlight for investors as a safe haven, which has mitigated downward pressures.\"

The dollar index rose by 0.1% against a basket of major currencies, increasing the cost of gold for holders of other currencies.

Global stock markets have sharply declined this week, with the S&P 500 index recording a four-day losing streak, driven by concerns related to the valuations of artificial intelligence stocks.

Investors are awaiting the release of the Federal Reserve's meeting minutes later today, along with the non-farm payroll report for September, which is being released tomorrow after being postponed due to the US government shutdown.

Economists surveyed by Reuters expect the report to show the addition of 50,000 jobs during the month.

Data released on Tuesday indicated that the number of Americans receiving unemployment benefits reached its highest level in two months by mid-October.

The US central bank had reduced interest rates by 25 basis points, but its chairman Jerome Powell expressed caution regarding any additional cuts during this year, due to reasons including a lack of available data.

Gold, which does not generate returns, tends to perform better in a low-interest-rate environment and during periods of economic uncertainty.

In other precious metals, silver prices in spot transactions rose by 0.4% to $50.90 per ounce, while platinum fell by 0.2% to $1533.82, and palladium increased by 0.6% to $1409.19.