• Gold steadied — after tumbling almost 3% over the previous two sessions — as investors weighed the interest-rate outlook following data showing a slowdown in the US labor market.
• Treasury yields fell after a report Tuesday showed US job openings dropped in October to the lowest level since March 2021, helping to support market consensus for monetary easing by the Federal Reserve next year.
• Investors are watching the inflation outlook carefully. Gold surged to a record high on Monday, before making a rapid retreat on concerns that bets for aggressive Fed rate cuts have been overdone. Lower rates are typically positive for bullion, which doesn’t yield any interest.
• The swaps market is pricing in a more than 60% chance of the Fed lowering borrowing costs in March. Investors will be monitoring the payrolls report for November later this week for clues to the central bank’s next steps.