Gold Slips as Traders Take Profits Ahead of Key Fed Decision

Gold prices edged lower in Asian trading on Thursday, as profit-taking outweighed rising confidence that the Federal Reserve will cut interest rates next week.

By 02:28 ET (07:28 GMT), spot gold slipped 0.3% to $4,191.55 an ounce, while February U.S. gold futures fell 0.3% to $4,219.46.

US data reinforce expectations for Fed rate cut

Despite the pullback, markets continued to price in nearly a 90% chance of a 25-basis-point rate cut at the Fed’s December 9–10 meeting, according to CME’s FedWatch tool.

Recent U.S. data bolstered the case for monetary easing:

• ADP private payrolls shrank by 32,000 in November — a sharp reversal from October’s revised gain of 47,000, and well below expectations for job growth.
• The ISM services index showed modest expansion, but underlying components pointed to a cooling economy.

Investors now look to Friday’s release of the September PCE Price Index — the Fed’s preferred inflation gauge — for clearer direction on how aggressive the central bank might be.

Fed leadership uncertainty adds to dovish narrative

Media reports indicated that the Trump administration abruptly cancelled interviews with several potential candidates for the next Fed chair, intensifying speculation that Kevin Hassett may be the frontrunner to replace Jerome Powell.

Hassett is viewed as more dovish, reinforcing expectations of a Fed pivot toward looser policy — a trend typically supportive of non-yielding assets like gold.

Broader metals market softens

Precious and industrial metals also weakened as traders trimmed positions ahead of next week’s Fed decision:

• Silver futures fell 1% to $58.00/oz
• Platinum futures dropped 1.3% to $1,661.60/oz
• LME copper dipped 0.2% to $11,455.26/ton
• U.S. copper futures were flat at $5.39/lb

Risk-off positioning and thin trading volumes added to the cautious tone across metal markets.