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Expectations of a Fed rate cut strengthened especially after ADP — an external provider of business management services including payroll, HR, and tax services — reported that private-sector payrolls in the US unexpectedly fell by 32,000 in November. Market analysts had forecast an increase of around 10,000.

This marks the sharpest slowdown in employment since 2023 and reinforces concerns about cooling in the US labor market. The report was aligned with dovish signals from Fed officials emphasizing the need to address slowing job growth.

In response, interest-rate futures priced in nearly a 90% chance of a 25-basis-point cut next week. Investors are now focused on Friday’s delayed September Personal Consumption Expenditures (PCE) Price Index data for additional clues on monetary policy. The failure of US–Russia talks regarding the Ukraine war also added to geopolitical risk premiums.

Gold is primarily traded in the London OTC market, the US futures market (COMEX), and the Shanghai Gold Exchange (SGE). Half of global gold consumption is used in jewelry, 40% in investment, and 10% in industry. The world’s largest gold producers include China, Australia, the United States, South Africa, Russia, Peru, and Indonesia.

According to international research, the biggest consumers of gold jewelry are India, China, the United States, Turkey, Saudi Arabia, Russia, and the United Arab Emirates.