At 13:08 GMT, XAUUSD is trading $4090.32, up $12.47 or +0.31%.
Gold Market Pullback as Dollar Firms Ahead of Jobs Data
Gold is down more than 1% on Thursday, driven by a firmer dollar and a sharp drop in expectations for a December rate cut. The dollar index sits near a two-week high, and that strength continues to pressure XAU/USD. Traders are dealing with typical year-end two-way flow, with profit-taking meeting fresh positioning.
The Fed minutes didn’t help the bullish side either: officials cut in October but warned that easing too fast risks sticky inflation and credibility concerns. Rate-cut pricing for December has fallen to roughly 34%, down from 49% just a day earlier.
Jobs Report Delay Keeps Fed Outlook Uncertain
Today’s September payrolls print—delayed by the shutdown—lands at 13:30 GMT, and expectations sit near 50,000 jobs versus August’s 22,000. It’s an old data set, but the Fed meets December 10 without the next jobs report until December 16, so this release still matters.
Deutsche Bank notes that a December cut basically requires a weak number, and traders know it. Treasury yields are inching higher ahead of the release, with the 10-year around 4.146% and the 2-year at 3.61%, keeping pressure on non-yielding gold.
Dollar Rally Extends as Fed Minutes Slash Cut Odds
Across FX, the dollar is pushing higher after the Fed minutes showed “many” officials opposing a December cut. The yen slid toward 158 per dollar before stabilizing, with traders openly debating whether Japan steps in around 160.