Post by : Badri Ariffin

Gold prices took a downturn on Friday, influenced by a stronger U.S. dollar and a better-than-anticipated jobs report, which have reduced hopes for an interest-rate reduction at the Federal Reserve's upcoming December meeting.

Spot gold slid by 0.1% to $4,072.87 per ounce by 0242 GMT, while U.S. gold futures for December delivery saw a slight increase of 0.3% to $4,071.90.

This shift followed the U.S. Labor Department revealing a 119,000 rise in September nonfarm payrolls, significantly surpassing market predictions. The data, which was delayed due to the federal government shutdown, has reinforced trust in the U.S. job market's resilience and has driven the dollar towards its strongest weekly performance in over a month, consequently making gold more expensive for international buyers.

Market sentiment is currently mixed as traders evaluate the likelihood of the Federal Reserve keeping its policies unchanged. Present calculations indicate a 39% chance of a rate cut next month, with uncertainties growing as the year draws to a close.

Minutes from the Fed’s recent October meeting have highlighted that policymakers are aware of the risks associated with aggressive cuts amidst ongoing inflation concerns. The central bank’s cautious stance has contributed to the broader hesitancy observed within commodity markets.

Other precious metals displayed varied performance. Spot silver decreased by 0.5% to $50.35, platinum increased by 0.4% to $1,521.41, and palladium remained steady at $1,377.50.

The combination of profit-taking, a steadfast U.S. economy, and strong currency values has kept gold trading within a narrow range as investors await clearer signals ahead of December’s policy decision.

#Global News