Gold prices slipped on Thursday as traders took profits after the yellow metal’s surge to fresh record highs on Wednesday.
Spot gold dropped overnight from $3,578 to $3,510, but later rebounded, last trading at $3,545.68 by 16:30 GMT.
The metal’s strong gains this week were driven by growing conviction that the Federal Reserve will cut rates at its September meeting. CME FedWatch showed markets assigning nearly a 100% chance of a 25-basis-point reduction.
Focus now shifts to Friday’s nonfarm payrolls report, a key test for the Fed’s path. Softer jobs data could reinforce expectations for easing, particularly after weaker job openings and sustained contraction in US manufacturing pointed to cooling economic momentum.
Several Fed officials also flagged labour market softness as grounds for greater openness to cuts, echoing comments from Chair Jerome Powell in August.
Safe-haven demand has been further buoyed by concerns over developed-world debt burdens and uncertainty around US trade policy. A court ruling against most of Trump’s tariffs raised questions over the durability of recent trade deals, with the administration now appealing to the Supreme Court.
Meanwhile, political pressure on the Fed also lingered, though Trump’s nominee Stephen Miran attempted to reassure markets by pledging to uphold central bank independence.