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Investing.com-- Gold prices steadied Friday, stabilizing after two straight days of gains amid uncertainty over whether the Federal Reserve will cut interest rates next month.
At 09:15 ET (14:15 GMT), Spot gold rose 0.1% to $4,087.21 an ounce and gold futures for December rose 0.2% to $4,084.84/oz.
Gold’s rally paused on Thursday after the yellow metal added over 1% in the past two sessions.
Payrolls data adds to uncertainty
Investors are trying to figure out the health of the U.S. jobs market, after the long-awaited U.S. nonfarm payrolls report showed that more jobs than expected were created in September, but the unemployment rate actually rose.
The print is months ago, having been delayed by the prolonged federal shutdown, and so may only have a limited influence on the Fed’s December decision, it still showed labor market weakness.
Nonfarm payrolls for the month came in at 119,000, up from a revised drop of 4,000 in August. Economists had anticipated a gain of 50,000 to the September payroll, while the August figure had been previously reported showing a gain of 22,000.
The unemployment rate rose to 4.4%, a four-year high, a gain from the 4.3% level seen the prior month.
A host of private readings, as well as jobless claims data released this week, showed the U.S. labor market was steadily weakening. This trend could set the Fed up for an eventual rate cut, given that preventing labor market weakness is one of the bank’s main priorities.
That said, minutes from the last Fed meeting showed policymakers were increasingly divided over whether to cut rates further.
Lower interest rates help demand for non-yielding assets like gold.
Other precious metals also stabilized Thursday, with spot platinum rising just 0.1% to $1,558.95/oz, while spot silver slipped slightly to $50.833/oz.
UBS lifts 2026 gold price forecast
UBS has raised its mid-year 2026 gold price forecast, arguing that the drivers behind this year’s surge remain firmly in place as the market heads into another period of heavy investor and central-bank demand.
Gold has held above $4,000 an ounce after a steep climb in 2025 that left it as the year’s strongest major asset. UBS strategists said the consolidation has not altered their outlook and now see the metal reaching $4,500 an ounce by June 2026, up from the previous $4,200 call.
“The gold price has stabilized above USD 4,000/oz after a phenomenal run in 2025,” strategists led by Wayne Gordon wrote, and despite the pause, they forecast “even higher prices in 2026,” prompting their forecast hike.
The strategists point to a combination of further Federal Reserve rate cuts, lower real yields, geopolitical tensions, and rising fiscal concerns in the U.S., all of which they believe should sustain demand from both financial investors and reserve managers.
They also flag increased political noise ahead of the midterm elections as another support for safe-haven buying.
Ambar Warrick contributed to this article
Safe haven demand was pressured by a broad rebound in global equity markets, following positive earnings from bellwether Nvidia Corp.
Focus was now squarely on U.S. nonfarm payrolls data due later in the day, which is expected to offer more cues on the labor market.
Persistent concerns over stretched fiscal spending in the developed world offered some support to gold, especially as Japanese government bond yields continued to push higher. A growing diplomatic row between China and Japan also buoyed haven demand.