PRECIOUS-Gold rises ahead of Fed rate cut decision, key US jobs data
By Sarah Qureshi
Dec 9 (Reuters) - Gold rose on Tuesday as traders remained optimistic ahead of the U.S. Federal Reserve's interest rate decision on Wednesday, while also awaiting the U.S. job openings report for further clues on labor market strength.
Spot gold XAU= rose 0.1% to $4,193.14 per ounce by 0922 a.m. ET (14:22 GMT), after falling to its lowest level since December 2 earlier today. U.S. gold futures GCcv1 for February delivery also added 0.1% to $4,222.20 per ounce.
"There's expectation of another 25-basis-point rate cut, which is generally bullish for gold. The market remains strong and could move to contract highs after the Fed announcement," said RJO Futures senior market strategist Bob Haberkorn.
The Fed's two-day policy meeting kicks off today and ends with a decision on Wednesday.
Fresh data show inflation is still stubborn and running above the Fed's 2% target, even as secondary indicators hint the once‑red‑hot labor market is starting to cool in some sectors.
Traders now see an 89.4% chance of a 25-basis-point cut this week. FEDWATCH
Investors are also awaiting Tuesday's 10 a.m. ET release of the October JOLTS report, to gauge labour market conditions.
If the job openings report is softer-than-expected, gold could rally, Haberkorn said.
Silver XAG= climbed 1.1% to $58.78 per ounce, trading near the record-high level of $59.32.
"A gold-silver ratio of 70 ounces is close to the average over the last couple of decades, but historically we've gone as low as 40. So, there's definitely room for outperformance," said Maria Smirnova, senior portfolio manager and chief investment officer at Sprott Asset Management.
It currently takes 71 ounces of silver to buy an ounce of gold XAU-XAG, compared with 82 ounces in October.
"Metals are volatile by nature, but unless we fix the deficit, silver only has one way to go, and that is up," Smirnova added.
Platinum XPT= gained 0.1% to $1,646.03/oz, while palladium XPD= rose 0.6% to $1,474.28/oz.
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