Gold slips from a one-week high early Wednesday on profit taking and a stronger dollar.
Positive signs on U.S. jobs this morning. The payrolls processing firm ADP reported this morning that the private sector added 41,000 hires for the December, slightly missing the forecasted 48,000 jobs, but a reversal from the loss of 29,000 in November. Private company payrolls had declined in three of the four months prior to the December release. Gold shrugged off the news as profit-taking remains its strongest mover this morning
Investors are now awaiting the weekly initial jobless claims for last week on Thursday and the key U.S. monthly jobs report Friday. It will be the first time the latter has come out on schedule since the U.S. government shutdown this fall. The jobs data is expected to inform Federal Reserve monetary policy in the next few months.
The stronger dollar also makes gold a more expensive investment for holders of other currencies.
February gold futures rose 1% Tuesday to settle at $4,496.10 an ounce on Comex, and the most-active contract increased 3.9% in the first two days of the week. Bullion rose 2% in December after gaining 6.5% in November and increasing 3.2% in October. It rallied 64% last year. The metal rose 27% in 2024. The February contract is currently down $44.90 (-1.00%) an ounce to $4451.20 and the DG spot price is $4428.90.
March silver futures rallied 5.7% Tuesday to settle at $81.04 an ounce on Comex, and the most-active contract surged 14% in the first two days of the week. The white metal has hit a series of record highs in recent weeks amid surging industrial demand and a recent short squeeze. Silver soared 24% in December after increasing 19% in November and rising 3.3% in October. It climbed 141% last year after rising 21% in 2024. The March contract is currently down $3.984 (-4.92%) an ounce to $77.055 and the DG spot price is $76.72.
Prices for gold and other precious metals are near record highs amid haven demand on geopolitical uncertainty. That includes the U.S ouster of Venezuelan President Nicolas Maduro over the weekend and calls by the White House to obtain Greenland from Denmark.
But investors are shifting their focus to the U.S. economy and the upcoming jobs data, particularly what it may signal about the Fed’s next moves. Potential interest rate cuts by the Fed are bullish for metals, making them more attractive as financial assets. The Fed closely watches jobs and inflation data when setting monetary policy.
The Fed reduced interest rates for a third consecutive time last month to 3.50% to 3.75%. Fed Governor Stephen Miran said Tuesday on Fox Business that the central bank will likely need to cut interest rates by more than 1 percentage point this year, though minutes of the last Fed meeting seemed to indicate that policymakers were split. Miran is closely aligned with U.S. President Donald Trump, who has been calling for aggressive rate cuts.
About 83% of investors are betting that the Fed will keep interest rates unchanged at the next policy meeting at the end of January, according to figures tracked by the CME FedWatch Tool. About 16% expect another 25 basis point cut. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts in 2024.
Spot palladium rose 6.5% Tuesday to $1,836.00 an ounce and gained 12% so far this week. Palladium increased 11% last month after adding 0.5% in November and rising 14% in October. Palladium gained 74% last year after dropping 17% in 2024. Currently, the DG spot price is down $115.20 an ounce to $1743.50.
Spot platinum increased 7.2% Tuesday to $2,447.10 an ounce and rallied 15% so far this week. It surged 22% in December after climbing 4.7% in November and rising 1% in October. Platinum increased 122% in 2025 after losing 8.4% in 2024. The DG spot price is currently down $203.70 to $2268.70.
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