Gold prices start week, month with losses amid anticipation of Fed’s decisions
Date
12/2/2024 1:37:24 AM
(MENAFN) Gold prices began the week and month with significant losses as market participants anticipated the Federal Reserve’s upcoming meeting. Spot gold dropped by 1.1 percent, losing USD29 to settle at USD2,625 per ounce early in the day, marking its lowest level since November 26. Similarly, US gold futures for February 2025 delivery declined by 1.2 percent, or USD32, to reach USD2,649 per ounce. These declines reflect heightened caution as traders await pivotal US employment data later in the week, which could influence gold price trends based on monetary policy expectations.
The release of the non-farm payrolls data on Friday is expected to be a critical market driver. Weak labor market data could bolster gold prices, as it might encourage the Federal Reserve to maintain or adopt more accommodative monetary policies. Conversely, strong employment figures would likely exert downward pressure on gold prices, reinforcing expectations of a more hawkish stance from the central bank. This duality has created a mix of anticipation and uncertainty among traders and investors monitoring gold markets.
Despite a challenging start to the week, spot gold showed some recovery by the end of the trading week, rising 0.5 percent to USD2,654 per ounce. Meanwhile, US gold futures climbed 0.8 percent, closing at USD2,680.9. However, this late-week rebound was not enough to offset the broader losses incurred earlier.
Gold ended the week with a decline of over 2.2 percent, adding to November’s overall losses of more than 3.4 percent. The persistent volatility underscores the market's sensitivity to upcoming economic data and Federal Reserve policy decisions, both of which are poised to shape the precious metal’s trajectory in the near term.
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