Gold experienced a decline, settling around $4,180 per ounce, as investors engaged in profit-taking and exhibited caution in anticipation of the upcoming FOMC meeting. Market participants are closely monitoring forthcoming U.S. economic data releases, including the delayed September PCE report. Geopolitical tensions, specifically unproductive US-Russia talks regarding the Ukraine war, provided some support.
- Gold fell to approximately $4,180 per ounce.
- Profit-taking and caution ahead of the FOMC meeting contributed to the decline.
- Markets are awaiting US economic data, including the September PCE report.
- The November ADP report revealed a loss of 32,000 private sector jobs, significantly below expectations.
- This ADP data reflects the steepest hiring slowdown since 2023.
- Fed officials emphasized the need to address slower job growth, echoing dovish sentiments.
- Rate futures are pricing in nearly a 90% chance of a 25 bps rate cut next week.
- Geopolitical tensions related to US-Russia talks on the Ukraine war offered some support.
The asset’s price movement appears to be influenced by a combination of factors. Investor sentiment is shifting as key economic data is released, creating uncertainty and prompting adjustments in positions. Weaker-than-expected employment figures and subsequent dovish comments from monetary policy officials are impacting expectations regarding future interest rate decisions. Furthermore, ongoing geopolitical instability continues to provide a safe-haven appeal that can mitigate downward pressures.