By: Economy Middle east

Gold prices slipped on Thursday as a firmer U.S. dollar and declining expectations of a December interest rate cut from the Federal Reserve pressured the market, with investors awaiting the delayed U.S. employment report.

In the UAE, gold rates eased slightly, with 24-carat gold and 22-carat gold losing AED1 to AED491 and AED454.25, respectively. Additionally, 21-carat gold edged down AED0.75 to AED436, and 18-carat gold lost AED0.5 to AED373.75.Globally, spot gold eased 0.21 percent to $4,073.28 per ounce as of 6:13 GMT, while U.S. December gold futures dipped 0.37 percent to $4,067.80 per ounce.

Fed rate cut bets ease

The U.S. dollar index climbed to its highest level in more than two weeks, adding pressure to gold prices by making the metal more expensive for buyers using other currencies.

Fed minutes released on Wednesday showed that policymakers opted to cut interest rates in October, even as they warned that such a move risked raising inflation and undermining public confidence in the central bank.

According to the CME FedWatch tool, traders now assign roughly a 33 percent probability to a rate cut at the Fed’s December 9–10 meeting, down from 49 percent the previous day.

With key economic data delayed by the extended U.S. government shutdown, the Federal Reserve is expected to enter December’s meeting with limited visibility, making a cautious decision to hold rates more likely. At the same time, persistently elevated U.S. interest rates continue to weigh on prices of non-yielding assets like gold.

Gold, which does not offer yield, typically performs well in low-interest-rate environments and amid periods of economic uncertainty.

September payroll report in focus

Market attention is turning to the September U.S. non-farm payrolls report, set for release later in the day after a delay caused by the recent government shutdown. Although the September payroll report is unlikely to influence the Fed’s December decision, it is expected to provide a clear snapshot of the U.S. labor market. The release was delayed by the prolonged government shutdown, and officials have indicated that October’s payroll data may never be published.

Private surveys and recent jobless claims point to a gradually weakening labor market, a development that could pave the way for an eventual Fed rate cut, given the central bank’s focus on supporting employment. However, persistent inflation is likely to prevent policymakers from easing monetary policy too aggressively.

Other precious metals

As gold prices declined, the precious metals market saw mixed movement. Spot silver fell 0.04 percent to $51.34, while platinum gained 0.56 percent to $1,555.00 and palladium rose 0.85 percent to $1,391.90.