Gold pulls back as traders lock in gains ahead of Fed meeting; PCE inflation data next in focus

Gold prices slipped during Thursday’s Asian session, with some investors taking profits as markets prepared for next week’s closely watched Federal Reserve decision. Despite the modest decline, expectations remain high that the central bank will cut interest rates.

By 02:28 ET (07:28 GMT), spot gold was down 0.3% at $4,191.55 per ounce, while February U.S. gold futures also dipped 0.3% to $4,219.46.

Soft U.S. data bolster rate-cut expectations

The retreat in gold came even as traders maintained strong conviction that the Fed will deliver a 25-basis-point cut at its December 9–10 meeting, with CME FedWatch assigning the move a probability close to 90%.

Fresh U.S. data reinforced that view. The ADP report showed private-sector employment dropping by 32,000 in November, a sharp swing from October’s revised gain of 47,000 and well below expectations for continued job growth.

The ISM services index registered moderate expansion, but underlying components signaled that momentum in the sector may be fading.

Market participants are now turning their attention to Friday’s release of the delayed September Personal Consumption Expenditures price index — the Fed’s preferred inflation measure — which could provide more definitive guidance on the potential pace and magnitude of easing.

Adding to the speculation, several media outlets reported that the Trump administration abruptly cancelled meetings with candidates to replace Jerome Powell as Fed chair, heightening expectations that Kevin Hassett may emerge as the frontrunner. A leadership shift viewed as more dovish would typically enhance the appeal of gold as a defensive asset.

Metals complex trades lower

The softness extended across the broader metals market as traders trimmed exposure ahead of next week’s U.S. policy call.

Silver futures eased 1% to $58.00 an ounce, while platinum futures declined 1.3% to $1,661.60.

On the industrial metals side, benchmark copper on the London Metal Exchange edged down 0.2% to $11,455.260 per ton. U.S. copper futures were steady at $5.39 a pound.