Gold futures decline, silver drops 2.5%

Gold futures slipped after stronger-than-expected US employment data reduced expectations that the Federal Reserve will cut interest rates at its December meeting.

During Friday trading, December gold futures fell 0.7%, or $28.30, to $4,031.70 an ounce.

Spot gold dropped 1% to $4,036.94 an ounce, while spot silver slid 2.15% to $49.59 an ounce.

The US Dollar Index — which tracks the greenback against six major currencies — edged down 0.1% to 100.06 by 9:30 am KSA time.

December silver futures declined 2.5% to $49.67 an ounce, while spot platinum shed around 0.55% to $1,510.34, and palladium fell more than 1% to $1,366.41.

According to the CME’s FedWatch tool, expectations for a 25-bp rate cut at the Fed’s December meeting dropped sharply to 35.4% from 98.1% a month earlier, while the probability of holding rates steady surged to 64.6% from 1.7%.