Slight Decline in Gold Prices Amid Anticipation of Economic Data Release

SadaNews: Gold prices slightly declined during trading on Thursday, December 4th, following the release of employment data in the United States that bolstered expectations that the Federal Reserve will lower interest rates next week, while silver reached a new record high.

The current price of gold is $4,188.46 per ounce.

Yesterday's ADP data showed that the U.S. non-farm private sector lost 32,000 jobs in November, contradicting expectations of an addition of 5,000 jobs.

Moreover, the chief market strategist at RJO Futures stated in remarks reported by Reuters that the disappointing job data, combined with silver reaching its highest price ever, supports the price of gold.

The CME tracking tool for rate hike expectations revealed an 89% probability that the Federal Reserve will cut interest rates next week.

Markets are still awaiting the release of the Personal Consumption Expenditures Price Index data for the U.S. from September on Friday, which is the preferred inflation measure for the Federal Reserve.

Generally, lower interest rates tend to support non-yielding assets like gold.

As for silver, prices have increased by approximately 102% since the beginning of this year due to concerns regarding market liquidity, following outflows towards U.S. stocks.

In terms of trading as observed early Thursday, gold futures for February delivery fell by about 0.2% to $4,226.10 per ounce, while spot gold prices declined by 0.2% to $4,195.70 per ounce.

On the other hand, silver futures prices rose by 0.3% to $58.78 per ounce.