Gold prices steadied on Thursday, struggling to extend the prior session’s rebound as renewed risk appetite and firm United States data kept investors cautious near the US$4,000 mark.
By 4:00 pm AEDT (5 am GMT), spot gold edged 0.2% higher to US$3,989.09 per ounce, remaining within a tight range for an eighth straight trading day following an 11% pullback from record highs of US$4,381.44 reached on 20 October.
The metal has faced persistent selling pressure as upbeat U.S. data supported the Federal Reserve’s less dovish policy stance, while a partial recovery in the U.S. dollar and global equities limited demand for safe-haven assets.
Data released overnight showed that U.S. private payrolls increased by 42,000 in October, surpassing expectations for a 25,000 rise, according to ADP.
Meanwhile, the ISM Services PMI climbed to 52.4, beating forecasts of 50.8 on stronger new orders.
The data dampened market hopes for imminent rate cuts, with the CME Group FedWatch Tool showing traders now pricing in about a 62.5% chance of a December rate reduction, down from 69% before the release.
Still, a record U.S. government shutdown and a retreating dollar have provided some support to gold, cushioning losses.
