Gold slips as investors take profits ahead of key Fed signals

Gold prices dipped on Thursday as investors booked profits after the metal touched a near two-week high in the previous session. Markets continued to weigh the possibility of a U.S. interest rate cut in December, amid mixed messages from Federal Reserve officials.

Spot gold was down 0.3% at $4,153.49 per ounce by 0616 GMT, while U.S. December futures dropped 0.5% to $4,150.00. Analysts said the pullback was mainly due to profit-taking and uncertainty over the Fed’s next move.

Some Fed officials, including New York Fed President John Williams and Governor Christopher Waller, have hinted that easing may be needed soon due to labor market weakness and lower Treasury yields. Ten-year yields hovered near one-month lows.

But other regional Fed leaders have urged caution, saying rate cuts should wait until inflation clearly heads toward the 2% target. Kevin Hassett, seen as a top contender to replace Jerome Powell should Donald Trump return to office, has also argued for lower rates.

Futures markets currently predict an 85% chance of a rate cut in December. Lower interest rates typically support gold, which does not generate yield.

U.S. data showed weekly jobless claims declined, though overall job creation remains sluggish. Consumer confidence also weakened in November amid concerns over employment and household finances.

In other metals, silver slipped 0.6% to $53.04 per ounce, platinum jumped 2.3% to $1,624.75, and palladium edged down 0.3% to $1,419.00.