NEW YORK: Gold prices fell over 1percent on Wednesday as investors booked profits after a recent rally, though it pared some losses after weaker-than-expected US private payroll growth for December bolstered bets on Federal Reserve rate cuts.
Spot gold dropped 1percent to USD4,452.97 per ounce, as of 1138 GMT. Prices fell as much as 1.5 percent to a session-low of USD4,427.39 earlier in the session. Spot gold ended 2025 64.4 percent higher, the biggest yearly gain since 1979.
US gold futures for February delivery were down 0.8 percent at USD4,459. “We’re viewing today’s pullback as general profit taking after that recent surge,” said David Meger, director of metals trading at High Ridge Futures.
But softer employment data continues to support the case for Fed easing, which has underpinned gold prices recently, Meger added. US private payrolls grew by 41,000 jobs in December, falling short of economists’ expectations for a 47,000-job rise, according to the ADP National Employment Report.
Markets anticipate 61 basis points of rate cuts this year, according to data compiled by LSEG. Focus now turns to Friday’s non-farm payrolls report.
Geopolitical uncertainty persisted following Venezuelan President Nicolas Maduro’s capture over the weekend, with US President Donald Trump announcing plans on Tuesday to refine and sell Venezuelan crude, while the White House separately confirmed discussions about acquiring Greenland, including potential military involvement.
Elsewhere, China’s central bank extended its gold-buying streak to a 14th straight month in December, according to official data. The data from China “continues to show strong demand that we’re seeing from Asia … and again, one more reason why we’ve seen this recent push to the upside,” Meger said.
Gold, a non-yielding safe-haven asset, tends to benefit in low-rate environments and during times of uncertainty. Among other metals, spot silver lost 4.6 percent to USD77.55 per ounce.
HSBC raised its 2026 average silver price forecast to USD68.25, citing tight supply and strong investment demand, but cautioned about volatility if supply constraints ease.
Spot platinum dropped 6.4 percent to USD2,288.15, while palladium traded 6.1 percent lower at USD1,710.69.
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