Gold Price Forecast: XAU/USD edges higher above $4,100 ahead of delayed US September NFP report

• Gold price drifts higher to near $4,110 in Thursday’s early Asian session. 

• Traders brace for the US September NFP report, which was delayed by a 43-day government shutdown. 

• Fed officials are divided about the path forward for interest rates. 

Gold price (XAU/USD) attracts some buyers to around $4,110 during the early Asian session on Thursday. The precious metal gains momentum amid the cautious mood and uncertainty over the US economy. Traders will closely monitor the US September Nonfarm Payrolls (NFP) later on Thursday. 

Heightened economic uncertainty, including a delay in key jobs reports due to a recent government shutdown, has complicated the Federal Reserve’s (Fed) assessment of the labor market. This, in turn, boosts the safe-haven asset like Gold. All eyes will be on the delayed September jobs report, which could provide insight into the health of the US labor market and offer more clues about the path of US interest rates. 

A weaker-than-expected report might increase the likelihood of a December rate cut and lift the yellow metal. Lower interest rates could reduce the opportunity cost of holding Gold, supporting the non-yielding precious metal.

On the other hand, waning expectations of a Federal Reserve (Fed) rate cut next month could exert some selling pressure on the non-yielding gold. The minutes from the Federal Open Market Committee’s (FOMC) October 28-29 meeting showed that Fed officials are divided and cautious about the path forward for interest rates. 

While the committee decided on a 25 basis point (bps) rate cut, it was a divided decision, with some members leaning against another reduction in the December meeting. Markets are now pricing in nearly a 30% chance of a Fed rate cut next month, down from around 60% odds last week, according to the CME FedWatch tool.