Gold prices held steady on November 2, buoyed by retreating U.S. dollar and Treasury yields on raised bets that the Federal Reserve may be done raising interest rates, while investors awaited U.S. non-farm payrolls data for further cues.
Spot gold was little changed at $1,981.53 per ounce by 12:50 p.m. ET (1650 GMT). U.S. gold futures gained 0.1% to $1,989.20.
Helping bullion's appeal, the dollar index slipped, and benchmark U.S. 10-year note yields fell to a near three-week low. [USD/] [US/]
Gold is supported as there are signs of cracks in the U.S. labor market, which probably signals the Fed is backing off completely from rate hikes, said Bob Haberkorn, senior market strategist at RJO Futures.
Data showed U.S. weekly jobless claims rose moderately as the labor market continues to show few signs of a significant slowdown.
The Fed held rates steady on Wednesday as policymakers considered whether financial conditions may be sufficiently tight to control inflation.
The market now sees an 80% chance of another Fed pause in December, according to the CME Group's FedWatch Tool.
Investors will also monitor the U.S. non-farm payrolls report due on Friday for further cues on the U.S. central bank's policy path.
Higher interest rates raise the opportunity cost of holding bullion.
Gold rose over 7% in October and surpassed the key $2,000-per-ounce level last week on safe-haven demand amid growing unrest in the Middle East.
"Gold already prices in the geo-political risks. if the war expands, then prices would benefit more," Haberkorn added.
Spot silver fell 1.1% to $22.73 per ounce and platinum lost 0.3% to $917.56.
Palladium was flat at $1,103.18 and was down nearly 40% for the year so far.
Shares of Johannesburg-based precious metals producer Sibanye Stillwater fell more than 3% after the company said it was considering further changes at its U.S. palladium mines to adjust the operations to metal prices that have dropped faster than anticipated.
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