NEW YORK: Gold prices slipped on Thursday as traders took profits following a record-breaking rally, with spotlight now shifting to the US payrolls report for fresh cues on Federal Reserve’s policy path.
Spot gold was down 0.1percent at USD3,553.75 per ounce by 9:35 a.m. EDT (1336 GMT), while US gold futures dipped 0.6percent to USD3,613.80. The US non-farm payrolls report is due on Friday.
This comes after spot gold prices hit a record high of USD3,578.50 on Wednesday, as weak job opening data cemented US rate cut bets and lingering uncertainties supported safe-haven demand. Data earlier in the day showed the number of Americans filing new applications for jobless benefits increased more than expected last week.
“With Fed rate cut expectations already largely priced in, tomorrow’s monthly jobs report becomes the key focal point. Any shift in that outlook would directly impact the dollar and, by extension, gold,” said David Meger, director of metals trading at High Ridge Futures. Several Fed officials who spoke on Wednesday said labor market worries continue to animate their belief that rate cuts still lie ahead for the central bank.
The market is now pricing in a 98percent chance of a 25 basis-point rate cut this month, according to CME Group’s FedWatch tool.
Gold, a non-yielding asset, tends to perform well in low interest rate environments and during periods of uncertainty. Fed’s independence will be in focus as US President Donald Trump’s economic advisor Stephen Miran faces a Senate Banking Committee hearing at 10 a.m. EDT on his nomination, amid Trump’s push to exert greater influence over the central bank.
Goldman Sachs said gold prices could surge well above its USD4,000 per troy ounce baseline by mid-2026, should private investors diversify more heavily into the metal.
Elsewhere, spot silver fell 0.7percent to USD40.89 per ounce, after hitting its highest since September 2011 on Wednesday. Platinum lost 2.6percent to USD1,384.39 and palladium shed 1.5percent to USD1,133.20.
Comments
Comments are closed for this article.