FX.co ★ Gold Remains Close to 6-Week High

Gold surpassed $4,210 per ounce on Thursday, remaining close to a six-week high as investor confidence grew regarding a potential Federal Reserve interest rate cut in the coming week. November's ADP report revealed an unexpected decline of 32,000 jobs in the private sector, significantly missing the anticipated gain of 10,000 and representing the third decrease in four months. This decline marks the most significant hiring slowdown since 2023, amplifying concerns about a cooling labor market in the United States. The report is consistent with dovish comments from Federal Reserve officials who have stressed the importance of addressing the deceleration in job growth. As a result, rate futures have now factored in a nearly 90% probability of a 25 basis point reduction next week. Investors are now eagerly awaiting the release of the delayed September PCE data on Friday for further insights into monetary policy. Furthermore, a geopolitical risk premium was supported by the lack of progress in the US-Russia discussions concerning the Ukraine conflict.