With the Fed pausing amid dismal US employment statistics, gold prices increased

 With the Fed pausing amid dismal US employment statistics, gold prices increased

At 1:05 p.m. ET (1705 GMT), spot gold was up 0.4% at $1,992.49 per ounce, having reached a session high of $2,003.69. Futures for US gold increased by 0.3% to $2,000.10.

On November 3, gold prices increased as the US dollar and Treasury yields declined after disappointing US employment data that reinforced predictions that the Federal Reserve would soon stop increasing interest rates.

At 1:05 p.m. ET (1705 GMT), spot gold was up 0.4% at $1,992.49 per ounce, having reached a session high of $2,003.69. Futures for US gold increased by 0.3% to $2,000.10.

In October, US employment growth fell short of forecasts and pay inflation moderated, suggesting a loosening of labor market conditions. Employers created 150,000 jobs in October, according to data, which was less than the 180,000 analysts had predicted.

"The Fed won't be able to maintain its aggressive stance if the labor market begins to worsen. Gold is benefiting from the data, which solidifies the notion of a Fed pause, according to Phillip Streible, chief market analyst at Chicago's Blue Line Futures.

The potential cost of storing zero-yield bullion rises with higher rates.

A month-plus low in benchmark 10-year U.S. Treasury rates and a 1% decline in the dollar index after the report added to gold's allure. [USD] / [US/]

According to the CME FedWatch tool, traders are now pricing in a 95% likelihood that the U.S. central bank will keep rates steady in December, up from 80% before to the data.

In a report, OANDA senior markets analyst Craig Erlam said that "$2,000 is a big emotional barrier (for gold) and signals regarding momentum indicate it may be a struggle at this time."

Investors monitor the situation in the Middle East as well. In October, safe-haven demand drove a more than 7% increase in gold.

"A regional confrontation may not develop in the near future, even if peace is unlikely to break out. We could see some stabilization or possibly a little pullback given the incredible run that gold has had over the last month, according to Tai Wong, an independent commodities trader based in New York.

Silver spot was 1.9% higher at $23.17 an ounce.

Palladium increased 2% to $1,121.59 while platinum increased 1.5% to $934.15.