Spot Gold extended its pullback from recent 1 1/2-week high on Thursday. Investors weighed soft US jobs data, which reinforced Fed rate cut expectations, along with stronger-than-expected ISM data.
Still, sentiment remained balanced, with market participants mindful of the potential for profit taking at current high price levels.
Additionally, the US Dollar continued holding close to an over two-week high, exerting pressure on the dollar-priced metal.
US job openings decreased to a 14-month low of 7.146 million in November, while hiring remained sluggish, the latest data showed.
At the same time, US private sector added 41,000 jobs in December, falling short of forecasts of 47,000, and after 29,000 jobs were cut in November.
On the other hand, US services sector registered the strongest growth since October 2024 in December. The ISM Services PMI rose to 54.4 in December from 52.6 in November.
Investor focus now sets on Friday’s more comprehensive Non-Farm Payrolls report, which may provide fresh clues on the Fed’s monetary policy path.
Fed Governor Stephen Miran said this week that aggressive policy easing was required to keep the economy moving forward.
FOMC policy makers had signaled just one 25 bps rate cut for 2026, while investors continue to expect two or three rate cuts.
Spot Gold was last down 0.60% on the day to trade at $4,429.97 per troy ounce.
Gold had a notable rally last year due to a combination of factors such as strong central bank buying, US tariff policies, potential rate cuts by the Federal Reserve, robust ETF inflows and geopolitical uncertainty. The yellow metal registered its best annual performance since 1979 in 2025, gaining 64.7%.
Gold reached an all-time high of $4,549.71/oz. on December 29th.
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