FX.co ★ Gold Falls Ahead of US Jobs Data

Gold prices dropped to below $4,070 per ounce on Thursday, reversing the gains made over the previous two days. This decline comes as investors adjust their expectations regarding further monetary easing, ahead of the crucial jobs data release. The recent minutes from the Federal Open Market Committee (FOMC) meeting highlighted a division among Federal Reserve officials on the necessity of rate cuts, with concerns about both a weakening labor market and ongoing inflation. Currently, traders estimate a mere 30% probability of a rate cut next month, a decrease from 50% just the day before. The September nonfarm payrolls report, which had been postponed, is due for release later today and is projected to indicate moderate job growth. The Bureau of Labor Statistics (BLS) has noted that there will be no regular October employment report, as household survey data cannot be collected in retrospect, and confirmed that October’s data will be included in the postponed November release. Additionally, improved risk sentiment in equity markets has diminished gold’s attractiveness as a safe-haven asset, contributing further to its price decline.