Gold Slips on Profit-Taking as Market Awaits Clear Fed Direction

Gold edged lower on Thursday as traders locked in profits after the metal hit a near two-week high in the previous session. The pullback comes as investors grapple with mixed signals from the Federal Reserve about the likelihood of a December U.S. interest rate cut.

Spot gold fell 0.5% to $4,145.08, while December U.S. gold futures slipped 0.6% to $4,140.80.

Brian Lan of GoldSilver Central noted that traders are simply booking profits while gold consolidates, given the Fed’s lack of clarity on its next move.

Conflicting views inside the Fed have driven hedging flows into swaptions and overnight-rate derivatives as investors brace for policy uncertainty.
Some officials, including John Williams and Christopher Waller, signaled that a December rate cut may be justified due to labor-market softness, which has helped pull 10-year Treasury yields toward one-month lows.

Others argue the Fed should wait for clearer progress toward its 2% inflation target before easing again.

Adding to the debate, Kevin Hassett — seen as a frontrunner to replace Jerome Powell — has echoed former President Trump’s stance that rates should be lower.

Markets remain confident: U.S. rate futures now imply an 85% chance of a December cut. Lower rates typically benefit gold, which offers no yield.

Economic data remains mixed:

• Weekly jobless claims dipped, but hiring remains insufficient to absorb unemployed workers.

• Consumer confidence weakened in November, weighed down by job concerns and household financial uncertainty.

Other precious metals were mixed:

• Silver fell 0.9% to $52.89

• Platinum gained 1.4% to $1,611.04

• Palladium slipped 0.9% to $1,409.87