Gold Prices Decline Slightly Amid Strong U.S. Payrolls Data

Gold prices fell slightly in Asian trade on Monday, retreating from record highs as strong U.S. payrolls data fueled expectations for a smaller interest rate cut by the Federal Reserve.

The yellow metal’s decline came as the dollar and U.S. Treasury yields rose following the robust payrolls data, leading traders to scale back expectations of a 50 basis point cut by the Fed.

Key Price Movements

• Spot gold decreased by 0.2% to $2,647.64 an ounce.
• December gold futures slightly dropped to $2,667.10 an ounce (as of 00:16 ET).

Gold’s surge to record highs occurred in September after the Fed reduced rates by 50 basis points and began an easing cycle. However, stronger-than-expected nonfarm payrolls data prompted traders to predict a more modest 25 basis point cut in the Fed’s upcoming November meeting, with over a 90% chance priced in according to the CME Fedwatch tool.

Fed Focus

This week’s focus remains on upcoming signals from the Fed and the U.S. economy likely to influence interest rates. Addresses from various Fed officials and the minutes from the September meeting are anticipated for clues. Additionally, consumer price index inflation data, due later, may further shape rate outlooks.

Other precious metals also saw declines, with platinum futures down 0.5% to $997.05 an ounce and silver futures falling 0.1% to $32.360 an ounce.

Copper Prices Steady Amid China Stimulus Considerations

In industrial metals, copper prices steadied on Monday after volatile trading over the past week. The market remains optimistic about potential stimulus in China, the top importer.

• Benchmark copper futures held at $9,972.0 a ton.
• One-month copper futures increased by 0.2% to $4.5728 a pound.

Copper had gained initial support from China’s announcement of more stimulus measures in late September, but trading volumes diminished recently due to the Chinese Golden Week holiday. Chinese markets are set to reopen on Tuesday, along with a government briefing regarding additional stimulus measures.