Gold drops, on track for best week in over two months before US payrolls
GLD•Gold fell 0.3% to $4,076.91 an ounce but was up 5% for the week, putting it on track for its strongest weekly gain in over two months ahead of US payrolls data. Goldman Sachs lowered its end-2026 gold price forecast to $4,150 an ounce from $4,650.
1. Gold slips ahead of jobs data
Spot gold fell 0.3% to $4,076.91 per ounce by 0928 GMT on Friday, but was up 5% for the week. US gold futures for December delivery dropped 0.6% to $4,088. Investors awaited the US non-farm payrolls report, due at 1330 GMT, for clues on the Federal Reserve’s interest rate path.
2. Oil and rate outlook
Oil prices kept inflation concerns in focus. UBS analyst Giovanni Staunovo said there was an “extremely strong correlation again at the moment” between oil prices, inflation and gold rates. Higher energy costs can increase the case for tighter monetary policy, raising the opportunity cost of holding non-yielding bullion. Traders saw a 64% chance of a Fed rate increase in December.
3. Forecast and other metals
Goldman Sachs lowered its end-2026 gold price forecast to $4,150 per ounce from $4,650, citing the implications of the Fed’s more hawkish stance in recent months. Lower gold prices encouraged Indian retail buying ahead of Diwali. Silver and platinum fell, while palladium was little changed; all three were poised for weekly gains.
