Gold Slips as Strong US Jobs Data Lifts Dollar

Gold prices inched lower on Friday as a firmer U.S. dollar and a stronger-than-expected jobs report dampened expectations of an interest-rate cut at the Federal Reserve’s December meeting.

Spot gold eased 0.1% to $4,072.87 per ounce by 0242 GMT, while U.S. gold futures for December delivery edged up 0.3% to $4,071.90.

The shift came after the U.S. Labor Department reported a 119,000 increase in September nonfarm payrolls, more than double market estimates. The data, delayed due to the federal government shutdown, reinforced confidence in the strength of the U.S. job market and pushed the dollar toward its strongest week in more than a month—making gold costlier for buyers holding other currencies.

Market sentiment remained mixed, with traders assessing whether the Federal Reserve would hold off on further policy easing. Current pricing shows roughly a 39% probability of a rate cut next month, reflecting uncertainty as the year-end approaches.

Minutes from the Fed’s October meeting earlier this week revealed policymakers acknowledged risks in cutting too aggressively amid lingering inflation concerns. The central bank’s caution has added to the broader hesitation seen across commodity markets.

Other precious metals moved in varied directions. Spot silver slipped 0.5% to $50.35, platinum rose 0.4% to $1,521.41, and palladium held steady at $1,377.50.

The combination of profit-taking, a resilient U.S. economy, and currency strength kept gold trading in a tight range as investors looked for clearer signals ahead of December’s policy decision.