(Bloomberg) — Gold was steady as traders awaited a key US jobs report that may give clues on the Federal Reserve’s interest-rate policy.

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Nonfarm payrolls due later Friday are the next major data release before policymakers meet Dec. 17-18 in Washington. While swaps markets are pricing in a 25 basis-point cut, strong labor figures could deter the central bank from implementing aggressive monetary easing next year. Lower rates are positive for non-interest bearing gold.

A skip in cuts would be bearish for gold in the near term, ANZ Group Holdings Ltd. analysts Mahjabeen Zaman and Brian Martin said. “Surprisingly strong nonfarm payroll data could drag prices below $2,600 an ounce,” they said in a note.

The precious metal held above $2,630 an ounce in early European trading after slipping 0.7% Thursday, its biggest decline since Nov. 25. Bullion has been trading in a narrow range since early last week.

Prices have dropped from a record high in late October as the dollar rallied following the US election victory of Donald Trump and tensions eased in the Middle East. Still, gold remains up by more than a quarter this year, supported by US rate cuts and central-bank buying.

Prices have scope to push higher next year on Fed rate cuts and further bank buying, according to Macquarie Group Ltd. Prices are set to average $2,650 an ounce in the first quarter, it said.

Spot gold traded up 0.1% at $2,634.93 an ounce as of 10:44 a.m. in London, on track for a small weekly decline. Silver and platinum edged lower, while palladium rose 0.8%.

–With assistance from Jack Ryan.

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