Gold prices fell back on profit-taking on Thursday after hitting a near four-week high last session, as attention turned to Friday’s jobs report to clarify the Federal Reserve’s 2025 interest rate path.
Spot gold was down 0.1% at $2,659.62 an ounce, by 0353 GMT. Futures contracts on US gold rose 0.2% to $2,678.30.
“Prices are trading in a narrow range and there is profit-taking in place. A new trigger is needed for gold to break through its resistance,” said Ajay Kedia, director of Kedia Commodities in Mumbai.
Bullion hit a four-week high last session after a weaker-than-expected U.S. private employment report suggested the Fed may be less cautious about easing interest rates This year. [GOL/]
The ADP national employment report showed Wednesday that growth of US private employment had slowed sharply a month ago, falling from 146,000 in November 2024 to 122,000. Economists polled by Reuters had forecast a gain of 140,000.
The market is now awaiting Friday’s US employment report for more guidance on Fed policy.
At the Fed’s latest meeting, policymakers agreed that inflation would likely continue to slow this year and saw a growing risk that price pressures would remain sticky due to the potential effect of Trump’s policies, according to the minutes.
-Trump will take office on January 20 and the tariffs and protectionist policies he proposes are expected to fuel inflation.
Bullion is seen as a hedge against inflation, but high rates reduce the appeal of this non-yielding asset.
For 2025, “we expect firm prices, but as gold enters a new paradigm, reduced physical demand and increased supply could dampen increases,” HSBC said.
Separately, exchange-traded funds (ETFs) backed by physical gold recorded their first inflow in four years, although their holdings fell by 6.8 metric tons, the World Gold Council said.
Spot silver was steady at $30.12 an ounce, platinum fell 0.3% to $952.95 and palladium lost 0.2% to $926.50.
Related News :