Gold prices slipped in Asian trading on Thursday, pulling back from record highs as investors booked profits and the dollar stabilized ahead of key signals on U.S. interest rates and employment.
The yellow metal climbed past $3,500 an ounce earlier this week, amid widespread expectations that the Federal Reserve could cut rates later in September. Elevated government debt in major economies also supported safe-haven buying.
Spot gold fell 0.8% to $3,531.69 per ounce, while December gold futures dropped 1.3% to $3,589.92 per ounce by 01:14 ET (05:14 GMT).
Taking Profits After Historic Gains
Gold hit an all-time high of $3,578.80 per ounce earlier this week, boosted by factors driving strong demand for safe-haven assets. Some profit-taking followed as concerns over the Fed’s independence eased slightly.
Trade uncertainty in the U.S. also fueled gold demand, after a court ruled most of former President Donald Trump’s tariffs illegal. Trump plans to appeal to the Supreme Court, warning that adverse rulings could undermine previous trade agreements.
Questions about the Fed’s independence remained amid legal battles over Trump’s attempt to dismiss Fed Governor Lisa Cook, though confidence was bolstered when Trump’s nominee, Stephen Miran, vowed to maintain the central bank’s autonomy.
A weaker dollar earlier in the week had lifted gold and other precious metals, but a modest rebound in the greenback triggered a pullback from recent peaks. Spot platinum fell 0.9% to $1,411.09 per ounce, and silver declined nearly 1% to $40.83 per ounce.
Industrial Metals Retreat
Copper also softened, with LME benchmark futures down 0.8% to $9,909.50 a ton and COMEX futures falling 1.1% to $4.5685 per pound, easing from near six-month highs. Gains earlier this week had been supported by expectations that China might introduce additional stimulus measures, boosting domestic growth and metal consumption.
Rate Cuts and U.S. Jobs Data in Focus
Market sentiment has been influenced by bets on a Fed rate cut in September. CME FedWatch indicates a nearly 97% probability of a 25-basis-point reduction at the September 16-17 meeting.
Investors are also monitoring Friday’s U.S. nonfarm payrolls report for labor market insights. Fed officials have suggested that cooling employment conditions could encourage rate cuts, echoing Chair Jerome Powell’s August comments. Weaker-than-expected July JOLTS job openings and August PMI contraction data signal a softening labor market and manufacturing sector, supporting expectations of looser policy.
Lower interest rates generally benefit non-yielding assets like gold, as the opportunity cost of holding such assets declines.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.