Gold prices struggle despite weaker dollar; payrolls eyed
Investing.com– Gold prices fell Thursday despite weakness in in the dollar ahead of key jobs report due Friday that is likely to sway the Federal Reserve’s rate decision slated for next week.
Spot gold fell 0.7% to $2,630.53 an ounce, while gold futures expiring in February fell 0.1% to $2,653.64 an ounce by 1:58 p.m. ET (18:58 GMT),
Gold sees limited safe haven demand as risk assets surge
The yellow metal saw limited safe haven demand this week even as France’s government collapsed, while calls for the impeachment of South Korean President Yoon Suk-Yeol grew after he unsuccessfully attempted to impose martial law in the country.
Risk-driven assets largely brushed off the political turmoil. While local markets in France and South Korea did weaken, broader markets largely advanced this week, with Wall Street indexes hitting a record high overnight on strength in technology shares.
Other precious metals were lower on Thursday. Platinum futures fell 1% to $944.15 an ounce, while silver futures fell 0.9% to $31.642 an ounce.
Among industrial metals, benchmark copper futures on the London Metal Exchange fell 0.1% to $9,095.00 a ton, while February copper futures fell 0.1% to $4.1973 a pound.
Dollar falls as softer data lift rate-cut bets; payrolls awaited
The dollar fell Thursday after data showing that jobless claims hit a six-week high supported bets that the Fed is likely cut rates again later this month.
The data arrived just a day ahead of the key nonfarm payrolls data, due on Friday.
The payrolls data will likely factor into expectations for future rate cuts at a time when fed members are cautioning how deep the rate cut cycle is likely to be.
Speaking at a New York Times (NYSE:NYT) event, Powell said strength in the economy allows the Fed to adopt a more cautious approach to future easing.
While he did not downplay expectations for a December rate cut, Powell’s comments did spur some caution over a slower pace of rate cuts in 2025.
