Economy

Gold edges down as investors turn cautious ahead of year-end US data

US Nov non-farm ​payrolls, unemployment rate data.

Gold prices slipped on Tuesday, as investors turned cautious ahead ⁠of key ‌U.S. jobs and inflation data, which could provide cues for Federal Reserve policy heading into the new year.

Spot gold lost 0.3% to $4,290.33 per ounce, as of 0637 ⁠GMT. Bullion has rallied 64% year-to-date, smashing multiple records along the way.

U.S. gold futures were down 0.4% at $4,316.40.

“We’re right up against the former high around $4,380 from mid-October. So the market is essentially asking whether there’s enough conviction to break higher, or whether this ⁠is a level where momentum starts ​to fade,” said Ilya Spivak, head of global macro at Tastylive.

Traders are pricing in a 76% probability that the ‍Fed will hold rates steady in January, according to CME’s FedWatch tool. This week’s data docket is expected to offer ​fresh clues on how quickly the Fed may ease policy in 2026.

The combined U.S. employment reports for October and November, due on Tuesday, will lack several details after a 43-day government shutdown curtailed data collection, including October’s unemployment rate.

Fed Governor Stephen Miran said current above-target inflation does not reflect underlying supply and demand dynamics that are generating price increases much closer to the central bank’s 2% target.

Markets are also awaiting weekly jobless claims and the Fed’s preferred inflation gauge, the Personal Consumption Expenditures index, due later this week.

Non-yielding bullion typically thrives in lower-rate environments.

Elsewhere, spot silver slid ⁠1.4% to $63.03 an ounce, after touching a record high of $64.65 ‌on Friday.

KCM Trade Chief Market Analyst Tim Waterer said silver retains a bullish undertone as industrial demand shows no signs of abating, after a 121% rally this year driven by ‌firm industrial and investment ⁠demand and tightening inventories.

Spot platinum climbed 1.3% to $1,806.46, while palladium rose 1% to $1,582.68.

© ZAWYA

GLOBAL BUSINESS AND FINANCE MAGAZINE

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