Gold pauses after five-day rally ahead of US jobs data
Gold (GC=F) eased after a five-day rally, as investors awaited a series of US economic data this week that could indicate the Federal Reserve’s stance on further interest-rate cuts.
Bullion traded near $4,280 an ounce, roughly $100 below the record high set in October, News.Az reports, citing Bloomberg.
The Fed cut borrowing costs again last week, but policymakers have since expressed differing views on whether additional rate cuts will be needed in 2026.
US economic readings this week will go some way to filling a data void created by the recent government shutdown. Delayed monthly employment numbers are due on Tuesday, with economists projecting a 50,000 increase in payrolls and a 4.5% unemployment rate — consistent with a sluggish, but not rapidly deteriorating, labor market.
Even moderate weakness in US non-farm payroll numbers would bolster the case for more rate cuts, Morgan Stanley strategist Michael Wilson said in a note. Lower rates are typically a positive for gold, which doesn’t pay interest. Several Fed officials are expected to speak throughout the week and inflation numbers are due Thursday.
Gold has surged more than 60% this year and silver has more than doubled, with both metals on track for their best annual performances since 1979. The scorching rallies have been underpinned by elevated central-bank buying and inflows into gold-backed exchange traded funds, in which holdings have risen every month this year except May, according to the World Gold Council.
Gold fell 0.5% to $4,281.93 an ounce as of 8:35 a.m. in London. It hit an all-time high of $4,381.52 in October. Silver (SI=F) declined 1.7%, after jumping 3.4% in the previous session. Platinum gained 0.5%, while palladium steadied. The Bloomberg Dollar Spot Index was little changed.
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