Gold settles flat as dollar weakens

Gold bars

Gold prices were steady on Thursday, as a weaker US dollar and growing expectations of a Federal Reserve rate cut offset pressure from increased demand for US Treasury bonds.

After a volatile session, December gold futures settled unchanged at $3,991 per ounce, having earlier risen above the $4,000 mark before erasing gains.

Support came from a decline in the US dollar, which retreated from a nearly five-month high. The dollar index — measuring the greenback against six major currencies — fell 0.47% to 99.73 points as of 10:53 p.m. Makkah time.

Meanwhile, data from Challenger, Gray & Christmas showed that US job cuts surged 183% month-on-month in October, intensifying concerns about the labor market in the world’s largest economy.

This fueled expectations of a Fed rate cut in December, with probabilities rising to 70%, up from 62% the previous day, according to the CME FedWatch Tool.

At the same time, labor market weakness — coupled with the ongoing US government shutdown — continued to boost demand for safe-haven assets such as gold, though the metal faced temporary pressure as investors turned to Treasuries ahead of any potential rate reduction.