Spot Gold edged lower on Friday, as commodity index rebalancing and a firm US Dollar weighed on the metal. Still, Gold was holding not far from its record level and was on course for an over 3% weekly gain.
At the same time, investor focus now sets on the key US Non-Farm Payrolls report, which may provide fresh clues on the Fed’s monetary policy path.
The annual Bloomberg Commodity Index rebalancing, designed to keep the index in line with the current state of the global commodity market, starts this week. This could cause some pressure on prices.
“Gold prices, for the last three days, have traded off on some profit-taking, but indeed a key driver at the moment is U.S. dollar strength in advance of NFP data,” independent analyst Ross Norman was quoted as saying by Reuters.
“Several indexes are reweighting the amount of precious metals and gold in them at the beginning of the year. So, to some extent, there’s a bit of weakness on index rebalancing, but fundamentally I think that things remain quite positive.”
The US Dollar held near a one-month high, exerting pressure on the dollar-priced yellow metal.
Employers in all sectors of the US economy, excluding farming, probably added 60,000 job positions in December, according to market consensus, following a job growth of 64,000 in November.
And, the unemployment rate probably fell to 4.5% from 4.6%.
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 0.10% on the day to trade at $4,473.16 per troy ounce.
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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