Gold Prices Register Near $4,290 an Ounce

SadaNews - The price of gold fell after five days of gains, as investors sold the metal to take profits while awaiting a bundle of U.S. data this week, which could provide indications regarding the Federal Reserve's policy direction on interest rate cuts.

The precious metal dropped by as much as 0.6% to around $4,290 an ounce, remaining about $100 below its record high set in October, after the third Fed cut in borrowing costs enhanced its appeal.

Since then, policymakers have expressed mixed views on the need for further interest rate cuts in 2026.

Job Report and Closing the Data Gap After the Shutdown

The U.S. economic data expected this week is set to help close the information gap left by the six-week government shutdown.

The delayed monthly employment data is expected to be released on Tuesday, with economists forecasting the addition of 50,000 jobs, alongside an unemployment rate of 4.5%, which aligns with a stagnant labor market, though not experiencing a rapid decline.

Michael Wilson, a strategist at Morgan Stanley, noted in a memo that even a moderate weakness in U.S. non-farm payroll data would strengthen the case for additional interest rate cuts.

Low interest rates typically support gold prices, as it does not yield a return. A number of Federal Reserve officials are expected to speak throughout the week, while inflation data is due on Thursday.

Gold and Silver Heading for Best Performance Since 1979

Gold has surged more than 60% this year, while silver prices have more than doubled, with both metals on track for their best annual performance since 1979.

These sharp increases have been driven by strong purchases from central banks and a decline in investor appetite for sovereign bonds and currencies. According to the World Gold Council, holdings in gold-backed exchange-traded funds increased every month this year except for May.

Gold fell 0.5% to $4,285.79 an ounce at 11:41 AM Singapore time, after reaching a record high of $4,381.52 in late October.

Silver declined by 2.7% after jumping 3.4% in the previous session. Platinum rose by more than 1% while palladium dipped slightly, and the Bloomberg Dollar Spot Index held steady with little change.