By Sherin Elizabeth Varghese and Ashitha Shivaprasad
(Reuters) – Gold prices slipped on Thursday as traders took profits following a record-breaking rally, with spotlight now shifting to the U.S. payrolls report for fresh cues on Federal Reserve’s policy path.
Spot gold fell 0.4% at $3,544.15 per ounce by 11:27 a.m. EDT (1527 GMT), while U.S. gold futures dipped 0.9% to $3,603.70.
The U.S. non-farm payrolls report is due on Friday. This comes after spot gold prices hit a record high of $3,578.50 on Wednesday, as weak job opening data cemented U.S. rate cut bets and lingering uncertainties supported safe-haven demand.
Data earlier in the day showed the number of Americans filing new applications for jobless benefits increased more than expected last week.
“With Fed rate cut expectations already largely priced in, tomorrow’s monthly jobs report becomes the key focal point. Any shift in that outlook would directly impact the dollar and, by extension, gold,” said David Meger, director of metals trading at High Ridge Futures. [USD/]
Several Fed officials who spoke on Wednesday said labor market worries continue to animate their belief that rate cuts still lie ahead for the central bank.
The market is now pricing in a 98% chance of a 25 basis-point rate cut this month, according to CME Group’s FedWatch tool.
Gold, a non-yielding asset, tends to perform well in low interest rate environments and during periods of uncertainty.
Standard Chartered said it expects further highs in gold, noting that safe-haven demand is being fuelled by persistent uncertainty around tariffs and growing concerns over Fed independence.
U.S. President Donald Trump escalated his battle with the Fed by attempting to fire Governor Lisa Cook – a move that has triggered a high-stakes legal challenge and raised fresh concerns over central bank independence.
Elsewhere, Poland’s central bank Governor Adam Glapinski plans to propose an increase in the target for gold as a percentage of reserves to 30% from 20% currently, he said.
Elsewhere, spot silver fell 1.2% to $40.71 per ounce, after hitting its highest since September 2011 on Wednesday. Platinum lost 3.8% to $1,367.61 and palladium shed 1.6% to $1,129.86.
(Reporting by Sherin Elizabeth Varghese and Ashitha Shivaprasad in Bengaluru; Editing by Ros Russell and Marguerita Choy)
