Gold prices were trading just below the US$4,100 level during Monday's Asian deals ahead of a data-heavy week in the United States, culminating in the delayed September nonfarm payrolls (NFP) report due on Thursday (Friday AEDT).
By 3:45 pm AEDT (4:45 am GMT), spot gold was trading 0.1% lower at US$4,081.39 per ounce, easing slightly despite renewed buying interest at the start of the week.
The metal drew support early Monday as traders reassessed the outlook for U.S. interest rates. Market pricing now implies a 43.9% chance of another Federal Reserve cut in December, according to the CME Group FedWatch Tool – down sharply from 67% a week earlier.
The shift follows firmer inflation readings and soft private-sector employment data, prompting Fed officials to strike a guarded tone and caution that the impact of two recent cuts is still filtering through the economy.
That hawkish messaging spurred a retreat from last week’s three-week high of $4,245, though gold still managed to post a modest weekly gain.
Adding to the week’s importance, the Bureau of Labor Statistics confirmed it will release September’s payrolls data on Thursday, ending a 43-day stretch without major economic publications.
Traders are unwinding some short positions in anticipation of the backlog being cleared, with the upcoming releases likely to shed light on the trajectory of the U.S. economy and the Fed’s policy path.
Physical demand across Asia also remains subdued. Reuters reported that elevated prices have reduced buying appetite, with Indian market discounts widening to a five-month high.
