(Bloomberg) -- Gold declined in quiet holiday-week trading after mixed US jobless data in did little to alter bets on the outlook for Federal Reserve interest-rate cuts.
Bullion fell 0.6% to $2,617.75 an ounce, wiping out Thursday’s advance, after recurring applications for US unemployment benefits rose to the highest in more than three years — suggesting that it’s taking longer for out-of-work people to find a job. Initial claims, however, ticked down.
Speaking after the Fed’s final policy meeting of 2024, Chair Jerome Powell last week reiterated that the labor market was cooling in a way that doesn’t raise concerns. The US central bank reined in the number of rate cuts expected in 2025, as Powell emphasized the need to see inflation ease further. Lower borrowing costs are typically positive for bullion, which doesn’t pay interest.
The precious metal hit successive records this year and is on course to close 2024 roughly 27% higher. Prices have been lifted by US monetary easing, haven demand and buying by central banks, but the rally has recently slowed after the dollar strengthened following the election of Donald Trump.
Spot gold was 0.6% lower at $2,617.48 an ounce at 11:12 a.m. in New York. The Bloomberg Dollar Spot Index was little-changed. Silver, platinum, and palladium all slipped.
--With assistance from Yvonne Yue Li.
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