Gold Drops to $4,180 as Bets Rise for U.S. Rate Cut Next Week

Gold prices declined to about $4,180 per ounce on Thursday, yet remained close to a six-week high as investor confidence grew regarding an anticipated interest rate cut from the Federal Reserve next week, according to Trading Economics.

ADP's November data revealed a surprising drop of 32,000 jobs in the private sector, compared to expectations of a 10,000 job increase, marking the third decline in four months and the largest slowdown in employment since 2023, raising concerns about a slowdown in the U.S. labor market.

The report aligned with dovish messages from Fed officials who emphasized the need to address the slowdown in job growth.

Consequently, markets priced in nearly a 90% chance of a 25 basis point rate cut next week.

Investors are now awaiting the release of the September PCE inflation index data on Friday for further insights into the monetary policy direction.

Geopolitical risks also provided some support for the metal, following the conclusion of U.S.-Russia talks regarding the war in Ukraine without breakthroughs.