By: Economy Middle east

Gold prices fell on Friday and were on track for a weekly decline, after a stronger-than-expected U.S. jobs report eased expectations for further interest rate cuts by the Federal Reserve in December.

In the UAE, gold rates eased further on Friday, with 24-carat gold losing AED4 to AED488 and 22-carat gold falling AED3.25 to AED452.25. Additionally, 21-carat gold edged down AED3.25 to AED433.5, and 18-carat gold lost AED3 to AED371.5.

Globally, spot gold dropped 0.16 percent to $4,054.39 as of 5:31 GMT, raising its weekly losses to 0.7 percent. Meanwhile, U.S. gold futures for December delivery eased 0.15 percent to $4,054.

Stronger U.S. dollar pressures bullion

Gold prices are currently consolidating amid a notably stronger dollar and ongoing market speculation over whether the Federal Reserve will proceed with further interest rate cuts. The U.S. dollar was set for its strongest week in over a month on Friday, with a firmer greenback weighing on gold prices by making the greenback-priced metal more costly for buyers using other currencies.

The highly anticipated U.S. Labor Department report, delayed by the federal government shutdown, revealed that September nonfarm payrolls rose by 119,000—more than twice the expected gain of 50,000.

Following the release of the stronger-than-expected jobs data, traders currently assign roughly a 39 percent probability to a Federal Reserve rate cut next month. As a non-yielding asset, gold typically benefits from low-interest-rate environments.

Fed policymakers caution against rate cut

Chicago Fed President Austan Goolsbee reiterated on Thursday that he feels “uneasy” about frontloading rate cuts, citing stalled progress on inflation toward the Fed’s 2 percent target and early signs that it may be moving in the wrong direction.

Minutes from the Federal Reserve’s October meeting also showed that policymakers cut rates while cautioning against moving too aggressively, given uneven progress on inflation.

Traders are now awaiting the release of flash U.S. PMIs and the revised University of Michigan Consumer Sentiment Index, while speeches from key FOMC members will be closely watched for signals on the potential rate-cut trajectory, likely influencing both the U.S. dollar and gold prices.

Meanwhile, Ukraine’s President Volodymyr Zelenskyy confirmed he will engage with President Donald Trump on a U.S.-backed 28-point peace plan, which calls for difficult concessions from Kyiv to end the Russian invasion. The ongoing geopolitical uncertainty continues to support gold as a safe-haven asset.

Other precious metals

As gold prices declined, the wider precious metals market was down on Friday. Spot silver dipped 1.71 percent to $49.72, while platinum fell 0.38 percent to $1,505.80, and palladium dipped 0.98 percent to $1,364.25.