Key Moments
- Spot gold declined 0.3% to $4,191.55 an ounce and U.S. Gold Futures for February also eased 0.3% to $4,219.46 in Asian trading.
- Futures markets reflected nearly a 90% implied probability of a 25-basis-point rate cut at the Federal Reserve’s December 9–10 meeting.
- Silver, platinum, and benchmark London Metal Exchange copper prices moved lower as traders adjusted positions before the Fed decision.
Gold Pulls Back Despite Growing Fed Cut Expectations
Gold prices retreated in Asian trade on Thursday, as market participants took profits following recent gains, even while conviction strengthened that the Federal Reserve is poised to ease policy at its upcoming meeting.
Spot gold was last quoted down 0.3% at $4,191.55 per ounce by 02:28 ET (07:28 GMT). U.S. Gold Futures for February delivery also slipped 0.3% to $4,219.46 per ounce.
The pullback came against a backdrop of rising expectations for monetary easing. Pricing from the CME FedWatch tool indicated markets were assigning nearly a 90% likelihood to a 25-basis-point rate reduction at the Fed’s December 9–10 policy gathering.
#XAUUSD #GOLD | H1 Analysis Update
Gold broke the black trend and confirmed it, and the selling pressure continues.
We are expecting our current targets 4.100 and 3.940 in sequence. pic.twitter.com/fefrzTlmvG— Economic Office (@Economic_Office) December 4, 2025
Soft U.S. Data Reinforce Easing Outlook
Recent U.S. economic indicators added to the case for lower rates. The ADP employment report showed that private sector payrolls fell by 32,000 in November, a sharp reversal from October’s revised 47,000-job gain and well below forecasts that had anticipated an increase.
Separately, the Institute for Supply Management’s services index signaled that the sector continued to expand in November, but details within the report pointed to a cooling trend.
PCE Inflation and Fed Leadership Uncertainty in Focus
Traders are now looking to the delayed September Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation measure, which is scheduled for release on Friday. The reading is expected to provide a clearer indication of how forcefully the Fed might move on rates.
Market sentiment has also been influenced by political developments surrounding future Fed leadership. Media reports indicated that the Trump administration abruptly cancelled interviews with several candidates to replace Jerome Powell as Fed chair, fueling speculation that Kevin Hassett could be elevated to the role.
Those reports have supported expectations that the central bank could adopt a more dovish posture under new leadership, a scenario that is typically viewed as supportive for non-yielding assets such as gold.
Broad-Based Declines Across Precious and Industrial Metals
Price weakness was not limited to gold. Other precious and industrial metals traded lower on Thursday as investors adjusted positions ahead of the Fed announcement.
| Metal | Contract | Move | Latest Price |
|---|---|---|---|
| Silver | Futures | -1.0% | $58.00 per ounce |
| Platinum | Futures | -1.3% | $1,661.60 per ounce |
| Copper | Benchmark LME Futures | -0.2% | $11,455.260 per ton |
| Copper | U.S. Futures | Unchanged | $5.39 per pound |
The simultaneous decline across precious and base metals underscored a cautious tone in commodities markets, with participants balancing profit-taking against expectations for an imminent shift in U.S. monetary policy.
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