Gold prices rose in European trade on Friday above on-week lows as US 10-year treasury yields declined. 

Now investors await US payrolls data later today, expected to provide crucial evidence on the US interest rate decision in December.

The Price

Gold prices rose 0.5% to $2644 an ounce, with the lowest since November 26 at $2613.

On Thursday, gold prices lost 0.7%, the first loss in three days as investment demand declined. 

US Yields 

US 10-year treasury yields fell 0.2% on Friday, about to pass through a six-week trough at 4.165% and pressuring the greenback.

It comes after disappointing US private sector employment and unemployment claims data, indicating that strict labor conditions are relaxing. 

According to the Fedwatch tool, the odds of a 0.25% Federal Reserve rate cut in December stood at 78%. 

Now investors await the all-important US payrolls report later today to gather even more clues. 

The US economy is expected to have added 218 thousand new jobs in November, with unemployment holding at 4.1%, and average hourly earnings up 0.3%.

SPDR

Gold holdings at the SPDR Gold Trust fell 1.72 tons to a total of 871.94 tons, the lowest since November 18.

Euro fell in European trade on Friday away from a week high against the dollar on profit-taking as investors monitor the French political crisis with the fall of the current government. 

Investors also await the crucial US payrolls report later today, which would provide clues on US monetary policy changes this month. 

The Price

The EUR/USD fell 0.2% today to $1.0566, with a session-high at $1.0588.

On Thursday, the pair rose 0.7%, marking the third profit in a row, and hitting a week high at $1.0589, as French bonds stabilized, while US 10-year treasury yields tumbled.

France’s Political Crisis 

French President Emanuel Macron met his allies and Parliamentary leaders on Thursday in an attempt to appoint a new prime minister after Barnieh’s resignation following a no vote confidence. 

The previous government collapsed due to deep differences about the 2025 budget as France faces a financial deficit crisis. 

Opposition parties protested rolling back spending, which led to the governmental collapse.

European Rates

European Central Bank President Christine Lagarde told the European Parliament in Brussels that the bank’s fight with inflation is approaching its end, but it’s not won yet.

The ECB will likely not comment on the increasing political uncertainty in Europe when it convenes next week.

The odds of an ECB 0.25% interest rate cut in December stood at 90%.

US Rates

According to the Fedwatch tool, the odds of a 0.25% Federal Reserve rate cut in December stood at 78%. 

Now investors await the all-important US payrolls report later today to gather even more clues. 

The yen rose in Asian trade on Friday against a basket of major rivals, moving in a positive zone for the second session against the dollar following bullish remarks from Bank of Japan officials, which bolstered the case for an interest rate hike in December. 

The yen is also boosted by a drop in US 10-year treasury yields before crucial US payrolls data later today.

The Price 

The USD/JPY fell 0.2% to 149.76 yen per dollar, with a session-high at 150.27.

The yen rose 0.3% yesterday against the dollar, resuming gains after a two-day hiatus, and approaching a two-month high at 148.64.

Japanese Rates

Recent data showed Tokyo’s inflation accelerated last month, heaping inflationary pressure on the Bank of Japan’s policymakers. 

And during the weekend, BOJ Governor Kazuo Ueda said upcoming interest rate hikes will depend on data moving in the right direction.

Following the data and remarks, the odds of a BOJ interest rate hike in December rose from 55% to 60%.

US Yields 

US 10-year treasury yields fell 0.2% on Friday, about to pass through a six-week trough at 4.165% and pressuring the greenback.

It comes after disappointing US private sector employment and unemployment claims data, indicating that strict labor conditions are relaxing. 

According to the Fedwatch tool, the odds of a 0.25% Federal Reserve rate cut in December stood at 78%. 

Now investors await the all-important US payrolls report later today to gather even more clues. 

Ethereum edged higher on Thursday with cryptocurrencies still attracting demand overall after supportive remarks from US President-elect Donald Trump.

Trump has vowed to scale back strict restrictions imposed by the Biden administration on the crypto market, and to turn the US into the world’s crypto capital.

Trump started by replacing current SEC chief Gary Gensler with crypto expert and insider Paul Atkins, a decision that was welcomed by the market.

Otherwise, Federal Reserve Chair Jerome Powell said in earlier remarks that bitcoin competes against gold as a speculation asset, and not the dollar.

When asked whether he owns cryptocurrencies, he said he’s not allowed to. 

Earlier data showed US unemployment claims rose to 224 thousand in the week ending November 30 from 215 thousand in the previous reading, with analysts expecting no changes. 

Investors await US unemployment, average hourly earnings data tomorrow, which will help determine the likely path ahead for monetary policies. 

Ethereum

On trading, ethereum inched up 0.1% on Coinmarketcap as of 21:54 GMT to $3857.