New Delhi: Gold prices hovered in a narrow range on Monday as global investors turned their attention to key U.S. economic indicators expected later this week data that could heavily influence future monetary policy moves by the Federal Reserve. The market’s cautious mood kept spot gold largely unchanged at $4,083.92 per ounce in early Asian trading, while U.S. December gold futures slipped marginally to $4,085.30.
Market analysts noted that Friday’s decline in gold may have stretched the metal’s corrective phase, making Monday’s stabilization expected. Still, the broader sentiment remains tied to uncertainties surrounding the Fed’s next interest-rate decision. According to current market pricing, the probability of a 25-basis-point rate cut in December has eased to around 46%, compared to nearly 50% a week ago, reflecting investors’ mixed expectations. Because gold does not generate yield, higher interest-rate outlooks typically reduce its appeal compared to interest-bearing assets.
Adding to the pressure, the U.S. dollar index held firm, making gold more expensive for international buyers and capping any upside momentum. Traders are now closely watching the upcoming U.S. non-farm payrolls report and other employment metrics, considered pivotal for gauging the Fed’s stance on inflation and economic cooling. The recent U.S. government shutdown has, however, disrupted the usual economic-data release calendar, with the Bureau of Economic Analysis still restructuring its schedule.
Across the precious-metals complex, the day remained moderately positive. Spot silver climbed nearly 0.8% to $50.96, benefitting from broader industrial-metal optimism. Platinum rose 0.7% to about $1,552.36, while palladium surged 1.7% to roughly $1,408.13, continuing its volatile but upward-leaning trajectory. Analysts attribute these movements to supply dynamics and expectations of improving manufacturing activity in early 2026.
For now, gold remains in a holding pattern, reflecting a market reluctant to commit in either direction without clearer signals. If U.S. labor-market data shows resilience, gold may face renewed pressure as the Fed leans toward maintaining higher rates for longer. Conversely, weaker data could revive hopes of earlier rate cuts, potentially giving gold the lift investors have been waiting for. In the days ahead, the metal’s path will hinge entirely on how the incoming U.S. data reshapes the debate and whether the Fed hints at a shift in its long-term rate trajectory.