Gold Edges Higher as Weak US Jobs Data Raise Rate-Cut Prospects

(Bloomberg) — Gold edged higher, consolidating three days of gains, as traders weighed weak jobs data and the imminent restart of the US government.

Bullion rose to around $4,140 an ounce, after data from ADP Research showed US companies shed 11,250 jobs per week on average in the four weeks ended Oct. 25. The latest figures reinforce concerns about weakness in the labor market and enhance the prospect of further rate cuts — a positive for gold, which doesn’t pay interest.

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Investors are also awaiting a flurry of official data when the US government ends the longest shutdown in its history. The restart – expected within days after the Senate passed a temporary funding measure – would remove the need for traders to rely on private data, adding more certainty to their forecasts and lifting the fog over future rate decisions.

Bullion has pulled back from last month’s record high above $4,380, with investors taking profits from a rally some feared had gone too far, too fast. In a sharp reversal, gold-backed exchange-traded funds have booked three straight weeks of net outflows, according to data compiled by Bloomberg.

But the metal – up more than 55% this year – remains on track for its best annual performance since 1979, supported by a number of factors including elevated central-bank buying.

Gold rose 0.4% to $4,142.81 an ounce as of 8:19 a.m. Singapore time. The Bloomberg Dollar Spot Index was flat. Silver, platinum and palladium edged higher.

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