Gold prices slipped during Thursday’s Asian session, pressured by profit-taking even as confidence continued to build that the Federal Reserve will move ahead with an interest rate cut next week.
By 02:28 ET (07:28 GMT), spot gold was down 0.3% at $4,191.55 an ounce, while February U.S. gold futures also eased 0.3% to $4,219.46.
US indicators reinforce expectations for Fed easing
The pullback in gold came despite markets maintaining a strong conviction — nearly a 90% probability — that policymakers will trim rates by 25 basis points at the Fed’s December 9–10 meeting, according to the CME FedWatch tool.
Recent U.S. data offered additional support for this view. The ADP report showed private-sector payrolls contracting by 32,000 in November, a sharp reversal from October’s revised increase of 47,000 jobs and well below expectations for a rise.
The ISM services index pointed to modest growth in the sector, but several underlying components hinted at a broader cooling trend.
Traders are now looking to Friday’s release of the delayed September Personal Consumption Expenditures Price Index — the Fed’s preferred inflation gauge — for clearer direction on how aggressively the central bank may shift policy.
Uncertainty was further compounded by media reports that the Trump administration abruptly cancelled interviews with several candidates to replace Jerome Powell, fueling speculation that Kevin Hassett may now be the frontrunner for Fed chair. The possibility of more dovish leadership has strengthened gold’s appeal as a non-yielding asset.
Metals retreat across the board
The weakness in gold was mirrored in other parts of the metals complex as traders cut exposure ahead of next week’s Fed decision.
Silver futures fell 1% to $58.00 an ounce, while platinum futures declined 1.3% to $1,661.60 per ounce.
On the base metals side, benchmark copper on the London Metal Exchange slipped 0.2% to $11,455.260 a ton, whereas U.S. copper futures held steady at $5.39 a pound.