Gold held a two-day advance as traders mulled the outlook for the Federal Reserve’s easing path, ahead of key jobs figures due later this week.

Bullion traded near $2,665 an ounce, after a 0.5% gain on Wednesday, showing limited movements as many US financial markets are closed today. Earlier, a report showed US private-sector hiring and wage growth slowed in December. The Fed will need to balance that against renewed inflation fears when deciding on cutting rates, with minutes of the central bank’s meeting last month reaffirming a more cautious approach to easing.

Lower borrowing costs are typically positive for gold, which doesn’t offer interest.

Traders are now shifting attention to Friday’s payrolls data for December, which are expected to show moderating yet still-healthy job growth that economists expect to carry on in 2025. A survey conducted by 22V Research showed most investors are watching the report more closely than usual.

Bullion surged 27% last year in a record-breaking run that was propelled in part by US monetary easing, though the rally lost momentum after Donald Trump’s US election victory buoyed the dollar. Bulls are now facing the prospect of less impressive gains this year, with Goldman Sachs Group Inc. this week pushing back a target for gold hitting $3,000 an ounce to mid-2026 on expectations for fewer Fed cuts.

“Uncertainties surrounding inflation risks, trade wars, geopolitical tensions and overall market ambiguity support gold’s upward momentum as a safe-haven asset for now,” Priyanka Sachdeva, an analyst at Phillip Nova Pte, said in a note Thursday.

Spot gold was steady at $2,662.82 an ounce as of 8:00 a.m. in London.