Oct 1 (Reuters) - Gold prices edged higher on Wednesday,
hovering near record levels as the U.S. moved closer to a
government shutdown, bolstering safe-haven demand, while weak
U.S. labor data reinforced expectations of further Federal
Reserve rate cuts.
FUNDAMENTALS
* Spot gold was up 0.2% at $3,861.22 per ounce, as of
0030 GMT. Bullion logged about 12% rise in September, making it
the metal's sharpest monthly rise since August 2011.
* U.S. gold futures for December delivery gained
0.4% to $3,888.80.
* The U.S. Senate failed on Tuesday to pass legislation
extending government funding, pushing the nation closer to a
shutdown, while U.S. President Donald Trump threatened
additional federal workforce cuts.
* A shutdown could delay the release of the closely watched
non-farm payrolls report, due on Friday, a key indicator for
Federal Reserve policy decisions.
* The JOLTS report on Tuesday indicated marginal growth in
U.S. job openings for August, alongside a decline in hiring,
signaling softening labor market conditions that may pave the
way for further interest rate reductions.
* Economic data has bolstered expectations for Fed rate
cuts, with traders pricing in a 97% likelihood of a
25-basis-point cut at October's meeting and a 76% chance in
December, according to CME Group's FedWatch tool
* Investors are also eyeing the ADP National Employment
Report due later on Wednesday for additional labor market
insights.
* Gold, a traditional hedge against uncertainty, thrives in
a low-interest-rate environment due to its non-yielding nature.
The metal has hit multiple record highs this year, with the
latest one being $3,871.45, hit on September 30.
* SPDR Gold Trust, the world's largest gold-backed
exchange-traded fund, said its holdings rose 0.11% to 1,012.88
tons on Tuesday from 1,011.73 tons on Monday.
* Elsewhere, spot silver was steady at $46.64 per
ounce, platinum held its ground at $1,573.76 and
palladium fell 0.4% to $1,252.25.
DATA/EVENTS (GMT)
0030 Japan S&P Global Mfg PMI Final SA September
0600 UK Nationwide house price mm, yy September
0750 France HCOB Manufacturing PMI September
0755 Germany HCOB Mfg PMI September
0800 EU HCOB Mfg Final PMI September
0830 UK S&P Global Manufacturing Pmi September
0900 EU HICP Flash YY September
0900 EU HICP-X,F,E,A,T Flash MM, YY September
1345 US S&P Global Mfg PMI Final September
1400 US ISM Manufacturing PMI September
(Reporting by Anjana Anil and Anmol Choubey in Bengaluru;
Editing by Sherry Jacob-Phillips)
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