WASHINGTON (dpa-AFX) - Gold prices declined on Friday as Fed rate cut hopes faded and Ukrainian President Volodymyr Zelensky agreed to work on the 28-point peace plan drafted by the U.S. and Russia.
Spot gold dipped 0.6 percent to $4,051.69 an ounce while U.S. gold futures were down 0.2 percent at $4,050.61.
The dollar was set for a weekly gain after stronger than expected U.S. September jobs data dented expectations of a near-term Federal Reserve rate cut.
The delayed jobs report showed the labor market added 119,000 jobs in September after a revised dip of 4,000 jobs in August.
Economists had expected employment to rise by 50,000 jobs compared to the addition of 22,000 jobs originally reported for the previous month.
The unemployment rate ticked up from 4.3 percent to 4.4 percent, its highest level since 2021, heightening uncertainty surrounding the strength of the U.S. economy and the rate outlook.
Fed Governor Michael Barr sounded hawkish about the annual inflation rate in the United States remaining well above the target at 3 percent, adding the Fed should be cautious with the interest rate path in the upcoming phase.
According to CME Group's FedWatch Tool, the chances of a Federal Reserve rate cut next month currently stand at 39.8 percent, down sharply from 98.8 percent a month ago.
On the geopolitical front, the plan for peace in Ukraine drawn up apparently behind closed doors with Russia and without Ukraine would require Ukraine to cede territory and accept curbs on its military.
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