Gold Prices Near $3980 an Ounce

SadaNews - Gold stabilized after recording its largest gains in about a week, as traders assessed U.S. interest rate expectations following the release of private sector employment data.

The precious metal maintained its level above $3980 an ounce, after rising by 1.2% on Wednesday.

Data from ADP Research showed that jobs in the private sector rose by 42,000 after two consecutive months of decline. Although the limited increase eased fears of a quicker deterioration in the labor market, it remains consistent with a general trend of declining demand for labor.

Federal Reserve member Stephen Miran described last month's employment increase as a "positive surprise," but once again emphasized that interest rates should be lower.

Miran has frequently called for more accommodative monetary policy, opposing decisions to cut interest rates by a quarter point in September and October, preferring a half-point cut each time.

Gold Rises 50% Since the Beginning of the Year

Gold has risen by more than 50% this year, reaching a record high in October before retreating partially. Interest rate cuts from the U.S. central bank have supported prices, along with investment inflows into gold-backed exchange-traded funds and increased purchases by central banks.

It should be noted that the longest government shutdown in U.S. history led to delays in releasing important official data, making it more difficult to assess economic conditions in the world's largest economy.

By 8:25 AM Singapore time, gold had fallen by 0.2% to $3973.15 an ounce, while the Bloomberg dollar index remained largely unchanged. Silver and platinum prices stabilized, while palladium declined.