10year Treasury yields hovering near 3month lows
Markets await U.S. nonfarm payrolls data on Friday

Dec 7 Reuters Gold prices climbed on Thursday, buoyed by a weakness in the dollar and Treasury yields, with investors awaiting crucial U.S. payrolls data that could help ascertain the Federal Reserve39;s interest rate trajectory.

Spot gold rose 0.4 to 2,033.47 per ounce by 0945 GMT. U.S. gold futures gained 0.2 to 2,050.60.

Yields on 10year Treasury notes hovered near a threemonth low, while the U.S. dollar index fell 0.3 against its rivals, making gold less expensive for other currency holders.

The biggest shortterm concern is the risk that too many rate cuts have been priced in. With that in mind, Friday39;s job report will be another important piece in the puzzle, said Ole Hansen, Saxo Bank39;s commodity strategy head.

Data this week showed gradual signs of a cooling labor market in the United States, with job openings falling to 212year lows in October.

The spotlight is now on the U.S. nonfarm payrolls data on Friday, ahead of the Fed39;s updated economic and interest rate projections at their Dec. 1213 policy meeting.

Recent dovish comments from Fed officials and a slew of weakerthanexpected economic data raised expectations that U.S. interest rates have peaked and the central bank may begin to cut rates early next year.

Traders are pricing in about a 60 chance of a rate cut by March next year, CME39;s FedWatch Tool shows. Lower interest rates tend to…