Dollar weakens after U.S. jobs data
Gold prices moved higher on Tuesday after new U.S. labor market data showed the unemployment rate climbed in November, reinforcing expectations that the Federal Reserve will continue cutting interest rates.
Spot gold rose 0.2% to $4,310.21 per ounce by early afternoon in New York, while U.S. gold futures settled slightly lower at $4,332.30. The U.S. dollar index slid to a two-month low, making dollar-denominated bullion more attractive to overseas buyers. Benchmark 10-year Treasury yields also edged down.
Fed policy expectations support bullion
“The data gives the Fed more reason to cut rates and if they cut rates, that’s bullish for gold,” said Bob Haberkorn, senior market strategist at RJO Futures, noting that markets are interpreting the latest figures as supportive for precious metals.
U.S. job growth rebounded in November, but the unemployment rate rose to 4.6%, higher than the 4.4% expected by economists surveyed by Reuters. The data comes amid ongoing economic uncertainty linked to President Donald Trump’s aggressive trade policies.
Last week, the Federal Open Market Committee delivered a quarter-point rate cut, and comments from Fed Chair Jerome Powell were viewed by investors as less hawkish than anticipated.
Markets eye inflation data
Interest rate futures continue to price in two additional 25-basis-point cuts in 2026, with a total of 59 basis points of easing expected next year. Lower interest rates typically benefit non-yielding assets such as gold.
Investors are now focused on upcoming U.S. inflation indicators, including the Consumer Price Index due Thursday and the Personal Consumption Expenditures index scheduled for Friday, which could further shape expectations for monetary policy.
Silver dips as platinum rallies
Other precious metals showed mixed performance. Spot silver slipped 0.3% to $63.75 an ounce, pulling back from last week’s record high. Platinum surged 4% to $1,854.95, its highest level since 2011, while palladium gained 2.5% to $1,606.41, a two-month high.
“Platinum group metals are breaking out as supply tightens and demand expands,” said Alex Ebkarian, chief operating officer at Allegiance Gold. He added that if gold ends 2025 above $4,400, prices could reach between $4,859 and $5,590 in 2026, with silver potentially retesting $50 an ounce.
Keywords: gold prices, U.S. unemployment rate, Federal Reserve rate cuts, dollar index, Treasury yields, Jerome Powell, precious metals market, silver prices, platinum rally, inflation data
