Gold Pulls Back After Record High as Investors Await Key U.S. Jobs Data

Gold prices retreated on Thursday as investors booked profits following bullion’s surge to a record high, while market attention shifted to upcoming U.S. jobs data that could influence expectations for interest rate cuts by the Federal Reserve.

Spot gold was down 0.8 percent at $3,530.69 per ounce as of 0511 GMT, easing from Wednesday’s all-time peak of $3,578.50. U.S. gold futures for December delivery also slipped, falling 1.3 percent to $3,590.

Analysts said the decline was largely technical, coming after a sharp rally that saw gold breach new records on mounting bets the Fed is preparing to cut rates. “We’ve seen a bit of profit-taking, but gold is still in a bull market at this point in time,” said Brian Lan, managing director of GoldSilver Central. “Rate-cut expectations and worries over the Federal Reserve’s independence are going to add to safe-haven demand. We won’t be surprised even if gold prices go up to $3,800 or even higher in the near-term.”

The pullback followed fresh signs of weakness in the U.S. labor market. The Labor Department reported on Wednesday that job openings fell more than expected in July to 7.18 million, adding to concerns about a slowdown in hiring. Several Fed officials, including Governor Christopher Waller, have said labor market conditions reinforce their view that the central bank should begin cutting rates soon.

Markets have responded swiftly to the latest data. Traders are now pricing in a 97 percent chance that the Fed will lower its benchmark rate by 25 basis points at its next meeting on September 17, according to CME Group’s FedWatch tool, up from 92 percent before the labor market report.

Gold, which does not yield interest, tends to perform strongly in a low-rate environment as the opportunity cost of holding the metal diminishes. Its safe-haven appeal has also been buoyed by ongoing political and economic uncertainties.

Investors are now focused on the U.S. non-farm payrolls report due Friday, which will provide the clearest indication yet of the health of the labor market. Economists polled by Reuters expect August payrolls to show an increase of 78,000 jobs, compared to 73,000 in July. A weaker-than-expected report could reinforce the case for more aggressive rate cuts.

Meanwhile, trade policy also loomed over markets after President Donald Trump suggested Wednesday that the U.S. may need to “unwind” trade deals with the European Union, Japan, and South Korea if it loses a pending Supreme Court case over tariffs. The remarks added another layer of uncertainty for investors already weighing the Fed’s next steps.

Despite Thursday’s dip, analysts say the broader outlook for gold remains bullish, with many expecting prices to remain elevated or push higher as monetary policy loosens and geopolitical risks persist.