Gold prices held steady on Friday, pausing after two days of strong gains. The market remained uncertain as traders questioned whether the Federal Reserve will cut interest rates next month.
At 09:15 ET (14:15 GMT), spot gold edged up 0.1% to $4,087.21 an ounce. December gold futures rose 0.2% to $4,084.84 an ounce. The recent rally slowed on Thursday after gold gained more than 1% across the previous two sessions.
Jobs data adds uncertainty
Investors continued to assess the state of the U.S. labor market. The long-delayed nonfarm payrolls report showed stronger-than-expected job creation for September. However, the unemployment rate still increased.
The report, postponed by the extended federal shutdown, may have limited weight on the Fed’s December decision. Still, it pointed to signs of labor market weakness.
Nonfarm payrolls rose by 119,000 in September, reversing a revised decline of 4,000 from August. Economists had expected an increase of around 50,000. The unemployment rate climbed to 4.4%, its highest level in four years, up from 4.3% the month before.
Additional private-sector data and weekly jobless claims also showed a steady cooling in the labor market. This trend could push the Fed toward future rate cuts as it tries to prevent further economic softening.
However, minutes from the latest Fed meeting showed policymakers were split on whether more rate cuts were appropriate.
Lower interest rates generally support gold, as the metal does not generate yield.
Precious metals mixed
Platinum prices were stable, with spot platinum rising 0.1% to $1,558.95 an ounce. Spot silver dipped slightly to $50.833 an ounce.
UBS raises 2026 gold forecast
UBS upgraded its mid-2026 gold price outlook, citing strong and persistent demand from investors and central banks. Gold has stayed above $4,000 an ounce after a sharp rise in 2025, making it one of the year’s top-performing assets.
The bank now expects gold to reach $4,500 an ounce by June 2026, up from its previous $4,200 forecast. UBS strategists argued that despite the recent pause, the core catalysts remain intact.
They highlighted expectations of further Federal Reserve rate cuts, falling real yields, geopolitical tensions, and rising fiscal risks in the United States. These factors, they said, should continue to support both investment demand and central-bank buying.
Political uncertainty ahead of the U.S. midterm elections could also strengthen safe-haven flows.
Market sentiment and upcoming data
Safe-haven demand eased slightly as global equities rallied, driven by stronger-than-expected earnings from Nvidia. Market attention now shifts to the upcoming U.S. nonfarm payrolls data, which is expected to offer fresh insight into labor conditions.
Concerns over high government spending in advanced economies also lent support to gold. Rising Japanese bond yields and growing diplomatic tensions between China and Japan added to the demand for safety assets.
