Traders currently see nearly a 40% chance of a rate cut next month. Gold, a non-yielding asset, typically performs better in a low-interest-rate environment.
Because of the government shutdown, the Bureau of Labor Statistics cancelled its October jobs report, which will now be combined with November’s data and released on December 16—after the Fed’s next meeting.
Minutes from the Fed’s October meeting, published on Wednesday, revealed that policymakers had already cut rates despite warnings that doing so risked inflaming inflation and undermining public confidence in the central bank.
Gold, a traditional safe-haven asset, has surged 55% this year, hitting an all-time high of US$4,381.22 on October 20.
Despite the recent pullback, UBS has raised its mid-2026 gold price target by US$300 to US$4,500 an ounce, citing expectations of future US rate cuts, persistent geopolitical risks and strong buying by central banks and index funds.
Among other precious metals, spot silver fell 1.7% to US$50.47 an ounce, platinum dropped 2.3% to US$1,510.70 and palladium eased 0.1% to US$1,379.