Gold prices fall as strong US jobs data dims chance of December rate cut
Gold slips after strong US jobs data weakens prospects of a December rate cut, with Fed officials signalling resistance to further easing.
Gold prices fell overnight after stronger-than-expected US employment data reduced the likelihood of an interest rate cut in December, while several Federal Reserve policymakers voiced opposition to further easing.
Reuters reported that gold retreated on Thursday (November 20) as investors assessed the delayed US September jobs report, which showed nonfarm payrolls rising by 119,000—more than double the forecast of 50,000. The figures significantly lowered market expectations for a December rate reduction.
Spot gold dropped 0.6% to US$4,058.29 an ounce at 1.45pm Eastern Time (18:45 GMT), while US gold futures for December delivery also slipped 0.6% to US$4,060 an ounce.
The US dollar strengthened against most major currencies, making dollar-priced gold more expensive for overseas buyers.
Peter Grant, vice president and senior metals strategist at Zaner Metals, said the employment figures “confirm what the Fed discussed in October: a labour market that is slowing but stable. A December rate cut now looks unlikely.”
Traders currently see nearly a 40% chance of a rate cut next month. Gold, a non-yielding asset, typically performs better in a low-interest-rate environment.
Because of the government shutdown, the Bureau of Labor Statistics cancelled its October jobs report, which will now be combined with November’s data and released on December 16—after the Fed’s next meeting.
Minutes from the Fed’s October meeting, published on Wednesday, revealed that policymakers had already cut rates despite warnings that doing so risked inflaming inflation and undermining public confidence in the central bank.
Gold, a traditional safe-haven asset, has surged 55% this year, hitting an all-time high of US$4,381.22 on October 20.
Despite the recent pullback, UBS has raised its mid-2026 gold price target by US$300 to US$4,500 an ounce, citing expectations of future US rate cuts, persistent geopolitical risks and strong buying by central banks and index funds.
Among other precious metals, spot silver fell 1.7% to US$50.47 an ounce, platinum dropped 2.3% to US$1,510.70 and palladium eased 0.1% to US$1,379.
Morning update (November 21):
Bloomberg reported that gold edged up 0.1% to US$4,082.90 an ounce at 7.18am Singapore time. The Bloomberg Dollar Spot Index also gained 0.1% in earlier trade. Silver and platinum were steady, while palladium posted a slight increase.
Gold prices have stabilised following the mixed US employment report, which offered little fresh incentive for the Federal Reserve to cut rates. Bullion is currently trading at around US$4,080 an ounce after a small decline in the previous session. The report—released ahead of the Fed’s 9–10 December meeting—showed stronger-than-expected job growth in September but a simultaneous rise in unemployment.
Several Fed officials are expected to favour holding rates steady, while swap traders now price in less than a 50% chance of a rate cut next month.
