Gold prices retreated on Thursday, pulling back from record highs as stronger Asian equities and a modest rebound in the United States dollar reduced safe-haven demand.
By 3:50 pm AEST (5:50 am GMT), spot prices were down US$27.98, or 0.8%, at US$3,532.19 per ounce.
A calmer tone in global bond markets helped ease investor anxiety, which was reflected in firmer equity markets and encouraged profit-taking in the precious metal after its recent overbought surge.
The U.S. dollar also strengthened modestly, adding further pressure on bullion.
Wednesday’s release of the U.S. Job Openings and Labor Turnover Survey (JOLTS) showed signs of cooling in the labour market, reinforcing expectations that the Federal Reserve could begin lowering borrowing costs this month.
According to the CME Group FedWatch Tool, markets are pricing in a 97.6% probability of a 25-basis-point rate cut at the Fed’s next meeting.
Still, traders appear reluctant to place fresh directional bets ahead of Friday’s U.S. nonfarm payrolls (NFP) report, which is expected to provide a clearer signal on the Fed’s policy outlook.
