Gold holds steady ahead of key US data releases

LONDON (December 3) Gold (XAU/USD) trades slightly softer on Wednesday as investors adopt a cautious stance ahead of the upcoming US economic data releases due later in the day. At the time of writing, XAU/USD is consolidating around the $4,200 psychological mark after easing from an intraday high near $4,228.

The US calendar brings ADP Employment Change and the ISM Services Purchasing Managers Index (PMI), both of which could help shape market expectations ahead of next week’s Federal Reserve (Fed) monetary policy meeting.

ADP will be watched closely as a read on labour conditions, especially with October’s Nonfarm Payrolls (NFP) set to be released together with the November report on December 16, leaving policymakers with few data points to assess labour conditions ahead of the decision.

However, markets already price in about an 87% chance of a 25 basis point (bps) reduction, keeping the US Dollar (USD) on the back foot and offering a broadly supportive backdrop for Gold.

Elsewhere, geopolitical tensions remain elevated after US envoys’ talks with Moscow on the Ukraine conflict failed to deliver meaningful progress.

Market movers: Dovish Fed signals and central bank demand keep Gold bid

• US President Donald Trump said on Tuesday that he will announce his nominee for the next Fed Chair in early 2026. This follows his comment on Sunday, “I know who I am going to pick, yeah. We’ll be announcing it.” NEC Director Kevin Hassett has emerged as a leading contender, and markets view his potential appointment as paving the way for a more dovish policy stance.
• Dovish Fed expectations remain a drag on the US Dollar. The US Dollar Index (DXY), which tracks the Greenback's value against a basket of six major currencies, is hovering near its lowest level since October 30, around 98.99 and marking a seventh consecutive day of declines.
• US envoy Steve Witkoff met Russian President Vladimir Putin in Moscow on Tuesday to discuss US proposals to end the war in Ukraine, but the meeting ended without any breakthrough. Putin’s foreign policy advisor, Yuri Ushakov, described the talks as “constructive and very informative,” though he admitted that “a compromise hasn’t been reached yet” on key territorial issues. He added that discussions would continue.
• According to a World Gold Council (WGC) report published on December 2, central banks ramped up gold purchases in October, adding a net 53 tonnes, the largest monthly increase so far this year and 36% higher than September.

FXStreet