Spot gold fell 1.1% to $4,044.09 an ounce as rebounding oil prices stoked inflation concerns and investors awaited US payrolls data. Gold was still on track for its best week since late August; Goldman Sachs cut its end-2026 forecast to $4,150 an ounce from $4,650.
Spot gold fell 1.1% to $4,044.09 per ounce by 0501 GMT on Friday, while December US gold futures dropped 1.5% to $4,053.30. Bullion remained on track for its best week since late August.
Oil rose more than 1%, reinforcing inflation concerns and expectations of higher interest rates for longer. Ilya Spivak of Tastylive said crude’s rebound was an inflationary pressure on gold. Tim Waterer of KCM Trade said investors were liquidating gold positions to free up cash and cover margin calls elsewhere.
The US non-farm payrolls report was due at 1330 GMT. Traders saw a 68% chance of a Federal Reserve rate increase in December, down from near certainty expected last month. Goldman Sachs lowered its end-2026 gold price forecast to $4,150 per ounce from $4,650, citing the Fed’s more hawkish stance. Silver, platinum and palladium fell on Friday but were headed for weekly gains.
