Gold prices climb as investors await US jobs data

Gold prices jumped on Thursday as investors anticipated upcoming U.S. employment figures and their potential impact on Federal Reserve policy. The precious metal initially gained during Asian trading, following its largest daily increase since mid-August in the prior session. This surge was driven by a weaker dollar, which made the dollar-denominated gold more attractive for investors holding currencies other than U.S. dollars.

Spot gold surged 0.6% to $2082.76 per ounce by 00:36 GMT, following a 3.4% increase the previous day. US gold futures for December delivery also rose 0.5% to $2092.90. The dollar weakened after a decisive election victory, providing a respite from market uncertainty and prompting investors to reassess potential regulatory changes.

ADP Research Institute's Wednesday report indicated that private-sector job growth in the U.S. increased in October. Traders are now eagerly awaiting the nonfarm payrolls report, scheduled for release on Friday, to gain further insight into the Federal Reserve's monetary policy outlook. Currently, CME's FedWatch tool suggests an 83% probability of a Fed rate hike in December.

Higher interest rates typically make non-yielding bullion less appealing, as the opportunity cost of holding this asset increases. Among other precious metals, silver rose 0.3% to $52.37 per ounce, platinum gained 0.6% to $1,505.85, and palladium fell 0.1% to $1,003.83.