Gold Steadies After Tumbling From Record As Rate-Cut Bets Fade

Gold was steady after its biggest one-day drop since July, as traders took profits near record-high levels and strong US data weakened the case for further monetary easing.

Bullion traded near $2,745 an ounce and was on track to end this week little changed. The metal fell from a record-high on Thursday as Treasury yields climbed, reflecting a drop in expectations for aggressive Federal Reserve interest-rate cuts following an unexpected drop in new jobless claims and a pick up in underlying inflation. Higher rates tend to weigh on gold, which doesn’t pay interest.

Ahead of the US central bank’s next policy meeting on Nov. 6-7, payroll figures are due later on Friday — potentially offering further clues on the Fed’s easing trajectory into 2025. Traders continue to price in a roughly 90% chance of a quarter-point cut next week.

The precious metal is still up about a third this year, supported by central-bank buying and haven demand amid conflicts in the Middle East and Ukraine. Uncertainty over next week’s neck-and-neck US presidential election has added to its appeal.

Spot gold rose 0.1% to $2,747.52 an ounce as of 7:37 a.m. in Singapore, after dropping 1.6% Thursday. The Bloomberg Dollar Spot Index was flat. Silver and palladium were also little changed, while platinum fell.