Gold edges higher as investors await US jobs report

Gold prices edged higher on Thursday as investors positioned themselves ahead of the closely watched U.S. nonfarm payrolls report, which could provide clues on the Federal Reserve's next monetary policy move.

Spot gold rose 0.8% to $4,065.05 per ounce by 10:37 GMT, while gold futures slipped 0.1% to $4,077.42 per ounce. The move comes as traders await the June jobs data, with economists forecasting 114,000 new jobs, down from 172,000 in May, and the unemployment rate expected to hold at 4.3%. The report has exceeded expectations for three consecutive months, pushing the three-month average to 188,000, the strongest in two years.

For gold traders, the jobs report is a key input for interest rate expectations. A weaker-than-expected reading could reinforce bets that the Fed will cut rates sooner, which would be supportive for gold as lower rates reduce the opportunity cost of holding the non-yielding asset. Conversely, a strong print could delay rate cuts, pressuring gold. Traders can track real-time gold price movements on NowPrice's live gold dashboard to react to the data as it hits.

Looking ahead, the focus will be on the nonfarm payrolls release on Friday, along with average hourly earnings data. Any signs of cooling in the labor market could boost gold's appeal as a hedge against economic uncertainty. Additionally, traders will monitor Fed commentary for confirmation of the rate path implied by the data. The gold market remains sensitive to shifts in U.S. monetary policy expectations, and this week's jobs report is a pivotal event for near-term direction.