Gold prices eased on Thursday during Asian trading hours, pulling back after two days of gains as traders sharply dialed down the likelihood of a Federal Reserve rate cut next month.
Improved risk sentiment, boosted by upbeat quarterly results from Nvidia Corp., reduced immediate appetite for safe-haven assets. With investors now waiting for the delayed U.S. nonfarm payrolls report, momentum in the gold market softened.
Lingering worries over rising government spending in major economies provided some underlying support for the metal. Higher Japanese government bond yields and escalating diplomatic friction between China and Japan also helped maintain some haven demand.
Spot gold slipped 0.2% to $4,070.27 per ounce, while December futures declined 0.3% to $4,069.09 by 00:15 ET (05:15 GMT).
Gold Rally Takes a Breather as Rate-Cut Odds Shrink
Bullion’s run higher stalled after gaining more than 1% over the previous two sessions.
The pause followed a sharp reassessment of the chances that the Fed will cut rates when it meets on December 10–11.
Minutes from the central bank’s October meeting revealed widening disagreement among policymakers about further easing, prompting investors to scale back expectations.
CME’s FedWatch tool now shows only a 21.5% probability of a 25-basis-point cut — nearly half of the 42.4% odds priced in just a day earlier.
A prolonged government shutdown has delayed key economic data releases, meaning the Fed will head into December’s meeting with limited new information to guide its decision.
Higher-for-longer U.S. rates typically weigh on gold, which does not generate income.
Among other precious metals, spot platinum rose 0.8% to $1,560.13 per ounce, while spot silver was steady at $51.3415 per ounce.
Markets Turn to Jobs Data for Fresh Direction
The next major event for traders will be the long-delayed September nonfarm payrolls report, due later on Thursday.
Although the data arrives too late to heavily influence December’s policy outcome, it will still provide insight into the direction of the U.S. labor market.
The shutdown-related delays mean October’s payroll report will likely never be released, adding further uncertainty.
Private-sector indicators and weekly jobless claims suggest the labor market continues to weaken gradually — a trend that could eventually justify looser monetary policy.
However, sticky inflation is expected to limit how aggressively the Fed can respond.
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