Grapevine

Gold lacks momentum as investors cautious ahead of U.S. jobs data

Gold bars and gold coins of different sizes lie in a safe on a table at the precious metal dealer Pro Aurum.

Gold was little changed on Thursday as investors kept to the sidelines ahead of U.S. payrolls data that could provide more clues on the size of an expected rate cut this month.

Spot gold steadied at $2,494.73 per ounce by 0440 GMT. U.S. gold futures lost 0.1% to $2,524.90.

Non-yielding bullion tends to perform well when interest rates are low. It is also considered a hedge against economic and political uncertainties.

Data overnight showed that U.S. job openings dropped to a 3-1/2-year low in July, suggesting the labor market was losing steam, but the reduction on its own is probably not enough to warrant a half-percentage-point rate cut by the Federal Reserve this month.

San Francisco Fed President Mary Daly said that rate cuts were needed to keep the labor market healthy.