Gold drops 1% on higher oil prices; US payrolls data in focus
GLD•Spot gold fell 1% to $4,047.19 an ounce as rebounding oil prices heightened inflation worries and investors awaited US payrolls data. Gold was still on track for its best week since late August.
1. Gold slips as oil rebounds
Spot gold fell 1% to $4,047.19 per ounce by 0718 GMT on Friday, while December US gold futures dropped 1.4% to $4,056.90. Bullion was on track for its best week since late August. Oil prices rebounded, adding to inflation concerns and expectations that interest rates could remain higher for longer.
2. Investors await payrolls
The US non-farm payrolls report was due at 1330 GMT. Traders saw a 67% chance of a Federal Reserve rate increase in December, down from near certainty expected last month. Two Fed officials on Thursday supported modest and steady rate increases to address above-target inflation.
3. Forecast and other metals
Goldman Sachs lowered its end-2026 gold price forecast to $4,150 per ounce from $4,650, citing the Fed's more hawkish stance. Spot silver fell 0.6% to $51.42 per ounce, platinum dipped 0.5% to $1,509.17 and palladium dropped 1.2% to $1,018.99; all three were headed for weekly gains.
