Gold Slips Below $4,200 as Traders Await Key U.S. Data and FOMC Decision

Gold fell under $4,200 per ounce on Friday as traders positioned ahead of crucial U.S. data and next week’s FOMC meeting.

Markets are awaiting the delayed September PCE report — the Fed’s preferred inflation gauge — due later today, which may offer clearer signals on the timing and pace of monetary easing.

Labor-market data pointed to further cooling, with ADP reporting a surprise 32,000 drop in private payrolls and Challenger confirming 71,000 layoffs in November, pushing year-to-date cuts close to 1.17 million.

These signs of softening economic momentum have strengthened expectations of a Fed rate cut next week, with odds around 87%.

Speculation also grew after reports that White House economic adviser Kevin Hassett could replace Fed Chair Powell in May, potentially signaling a shift toward a more dovish policy stance.

For the week, gold is heading for a modest loss.