FX.co ★ Gold Rebounds Thursday Afternoon

Gold prices rose above $4,210 per ounce on Thursday, recovering from an earlier dip as investors adjusted their positions ahead of the Federal Open Market Committee (FOMC) meeting. This rebound was influenced by new U.S. labor data that heightened expectations of an imminent interest rate cut. A report from ADP indicated an unexpected decline of 32,000 in private payrolls, while data from Challenger revealed 71,321 layoffs in November, pushing the year-to-date total to nearly 1.17 million. These developments suggest a cooling labor market, boosting confidence in a potential 25 basis point rate cut in December. Concurrently, the U.S. dollar weakened, with the DXY index dropping to its lowest point since late October at around 98.8, thereby decreasing the opportunity cost of holding gold. Currently, markets anticipate approximately an 87% probability of a rate cut next week. Investors are now focused on the delayed release of September's Personal Consumption Expenditures (PCE) data, scheduled for Friday, which is expected to provide further clarity on the timing and extent of the anticipated easing measures.