Gold retreats slightly, eyes on upcoming Fed meeting

December 04, 2025 (MLN):  Gold dipped on Thursday as traders locked in profits and took a cautious approach ahead of the upcoming U.S. Federal Reserve meeting.

Spot gold was down 0.25% at $4,184.74 an ounce as of [11:33 am] PST, according to data reported by Mettis Global.

U.S. gold futures for December delivery also dropped 0.2%, settling at $4,225.90 per ounce.

Data released on Wednesday showed that U.S. private payrolls fell by 32,000 in November, marking the largest decline in over two and a half years, according to the ADP employment report.

Market participants are also awaiting key economic data that could offer clearer guidance on the central bank’s next moves on interest rates, CNBC reported.

However, continued low layoff levels indicate the labor market may still be relatively resilient.

Market expectations for a rate cut at the Fed’s December 9–10 meeting remain high. CME’s FedWatch tool indicates an 89% probability of easing, aligning with predictions from major brokerages.

Lower interest rates typically benefit non-yielding assets such as gold.

In other precious metals, silver fell 0.4% to $58.26 after hitting a record high of $58.98 on Wednesday.

Silver has surged 101% this year amid market liquidity concerns following outflows to U.S. stocks, its inclusion in the U.S. critical minerals list, and ongoing structural supply deficits.

Platinum and palladium also saw declines, with platinum slipping 0.9% to $1,656.15 and palladium down 1.3% at $1,441.75.

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