Gold falls as strong US jobs data dims rate-cut prospects
Fri Nov 21 2025
Gold prices slipped on Friday and were on track for a weekly fall, as a stronger-than-expected U.S. jobs report reinforced expectations that the Federal Reserve will refrain from cutting rates at its December meeting.
FUNDAMENTALS
* Spot gold was down 0.2% at $4,062.79 per ounce, as of 0157 GMT. Bullion has lost 0.3% so far this week. U.S. gold futures for December delivery edged 0.2% higher to $4,068.10 per ounce.
* The closely watched U.S. Labor Department report, delayed by the federal government shutdown, showed that September nonfarm payrolls increased by 119,000, more than double the estimated increase of 50,000.
* Traders now see nearly a 39% chance for a Fed rate cut next month, down from 60% earlier this month.
* Gold, a non-yielding asset, tends to do well in low-interest-rate environments.
* The dollar was on track on Friday for its strongest weekly performance in more than a month, as investors wagered the Fed is unlikely to cut rates next month. A stronger dollar makes greenback-priced gold more expensive for holders of other currencies.
* Minutes from the Fed's October meeting released on Wednesday showed it cut interest rates even as policymakers cautioned that doing so could risk entrenched inflation and a loss of public trust in the U.S. central bank.
* Chicago Fed President Austan Goolsbee repeated on Thursday he is "uneasy" about frontloading interest-rate cuts, particularly with progress on inflation towards the Fed's 2% goal looking to have stalled and starting to go the wrong way.
* Cleveland Fed President Beth Hammack warned on Thursday that cutting rates further right now carries a wide range of risks for the economy. Fed Governor Lisa Cook sees a risk of outsized asset price declines.
* SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.41% to 1,039.43 tons in the previous session from 1,043.72 tons on Wednesday.
* Elsewhere, spot silver slipped 0.4% to $50.39 per ounce, platinum climbed 0.4% to $1,517.95, and palladium added 0.3% to $1,381.22.