Gold ticks higher as US unemployment climbs in November

Gold climbed on Wednesday after a U.S. jobs report showed the unemployment rate rose in November, buoying bets of further U.S. interest rate cuts next year while pressuring the dollar and yields.

FUNDAMENTALS

* Spot gold gained 0.4% to $4,318.37 per ounce, as of 01:17 GMT. U.S. gold futures gained 0.3% to $4,347.10.


* The U.S. dollar fell to a more than two-month low on Tuesday, making greenback-priced bullion more affordable for overseas buyers. Benchmark 10-year U.S. Treasury yields also fell after data showed an unexpected increase in the unemployment rate last month.

* The U.S. unemployment rate was at 4.6% for the month of November, exceeding a Reuters survey of economists' estimate of 4.4%, stemming from economic uncertainty as a result of President Donald Trump's aggressive trade policy.

* Last week, the U.S. Federal Reserve delivered a third and last quarter-point interest rate cut for the year, while Chair Jerome Powell's accompanying comments were perceived as less hawkish than expected.

* Traders still expect two cuts of 25 basis points each in 2026. Non-yielding gold tends to thrive in a low-interest rate environment.

* Investors await November's Consumer Price index, due on Thursday, and Personal Consumption Expenditures index, the Fed's preferred gauge of inflation, due on Friday.

* Meanwhile, U.S. Treasury Secretary Scott Bessent said on Tuesday that both Kevin Warsh and Kevin Hassett were qualified to lead the Federal Reserve, adding that any candidate Trump picks for the job needs to have "an open mind".

* Spot silver added 0.8% to $64.30 an ounce, after hitting a record high of $64.65 on Friday. Platinum rose 1% to $1,869.06, and palladium lost 0.2% to $1,600.19.

DATA/EVENTS (GMT)

0700 UK CPI, Core CPI YY Nov

0700 UK CPI Services MM, YY Nov

0900 Germany Ifo Business Climate New Dec

0900 Germany Ifo Curr Conditions, Expectations New Dec

1000 EU HICP Final MM, YY Nov.