Gold Edges Lower as Stronger Dollar and Fading Fed Cut Hopes Pressure Prices

Gold prices slipped on Thursday, weighed down by a firmer U.S. dollar and declining expectations of a Federal Reserve rate cut in December, as traders awaited a delayed U.S. jobs report.

Spot gold eased 0.1% to $4,077.82 per ounce by 0449 GMT, while U.S. gold futures slipped 0.2% to $4,076.50.

Kelvin Wong, senior market analyst at OANDA, said the recent pullback in rate-cut expectations is the main drag on bullion.
“Rate-cut bets have been pared back significantly over the past two weeks,” he noted. “In the short term, gold is likely to remain subdued below the $4,100 level. Key resistance stands at $4,155, while support lies near $4,000–$3,980.”

The dollar index (DXY) climbed to a more than two-week high, making gold costlier for buyers using other currencies.

Minutes from the Fed’s October meeting showed policymakers cut rates but warned that easing too much could risk entrenched inflation and damage public confidence. According to CME’s FedWatch tool, traders now assign only a 33% chance of a rate cut in December, down from 49% a day earlier.

Non-yielding gold typically benefits from lower interest rates and periods of economic uncertainty.

Market focus now shifts to the September U.S. non-farm payrolls report, delayed by the recent government shutdown. Economists expect employers added around 50,000 jobs.

Holdings of the SPDR Gold Trust (GLD) rose 0.22% to 1,043.72 tonnes on Wednesday.

In other metals:

• Silver was steady at $51.34

• Platinum gained nearly 1% to $1,559.87

• Palladium rose 1.3% to $1,397.62