WASHINGTON (dpa-AFX) - Gold prices have moved sharply lower on Friday, partly erasing two sessions of gains, as concerns of inflation returned to markets as U.S. moves on Iran remain unpredictable along with strengthening U.S. dollar after nonfarm payrolls data showed stronger-than-expected job growth.
Front Month Comex Gold for December delivery has turned lower by $39.80 (or 0.97%) to $4,073.70 per troy ounce.
Front Month Comex Silver for December delivery has edged lower by $0.471 (or 0.90%) to $51.905 per troy ounce.
Today in the U.S., data released by the U.S. Bureau of Labor Statistics revealed that the economy added 165,000 jobs in October, following an upwardly revised increase of 60,000 jobs in September, and well above market forecasts of 65,000. This is higher than the average monthly gain of 48,000 over the prior 12 months.
The unemployment rate eased to 4.1% in October, down from 4.2% in September and slightly below market expectations of 4.2%.
Yesterday, two U.S. Federal Reserve officials recommended a gradual ramping up of interest rates to combat inflation.
Cleveland Fed President Beth Hammack stated that the Fed might need to move to adopt a restrictive stance to bring inflation back to the 2% level.
Richmond Fed President Thomas Barkin remarked that inflation is too high and added that steady rate hikes make sense.
In its last meeting, the Fed had left the interest rates unchanged in the 3.75% to 4.00% range.
Yesterday, President Donald Trump stated that the world will know about his decision on Iran soon. Indicating that he has not ruled out a military option, Trump maintained that he could also destroy what is left of Iran if needed.
Today, Qatar officially stated that the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani had a discussion with Trump over the phone about de-escalation.
After the Tuesday midterm election's results showed a dramatic capture of the U.S. Congress by Democrats, economists are of the view that Trump may not be able to exert his influence on policy decisions on the political and monetary fronts as he did before.
Following the sweep by the Democratic party in both the Senate and the House of Representatives, anticipation for easing of the Middle East conflict continues to grow. Both chambers of Congress could pressure Trump to pursue a diplomatic route to solve the Iranian crisis.
However, the elected candidates will assume office only in January, offering a nearly two-month period for the current dispensation to choose any strategy.
While a majority of traders predict a possibility for both nations to initially reach a framework of negotiation and then resolve all critical issues through extended talks, the risk of Trump ordering a renewal of attacks on Iran has not been fully discounted in which case, Iran's retaliation would set off a potential expansive war in the gulf.
Today, the U.S. dollar index was last seen trading at 102.22, up by 0.64 (or 0.63%) today.
According to the CME Group's FedWatch Tool, currently investors are betting on a 78.30% chance of a 25-basis-point interest rate-hike at the upcoming meeting of the U.S. Federal Reserve on December 8-9 while the odds on rates being held at the current level stand at 21.70%.
Yesterday, Goldman Sachs lowered its gold price forecast for the end of 2026 from $4,650 per troy ounce to $4,150 per troy ounce. The bank expects the Fed to cut interest rates between late 2027 and early 2028.
According to Reuters, the bank also reduced its forecast for the end of 2027 from $5,400 per troy ounce to $4,800 per troy ounce.
The analysts attributed the revision to the implications of a more hawkish monetary policy stance adopted by the U.S. Federal Reserve over the past few months.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
