FX.co ★ Gold Holds Strong After Job Data

On Tuesday, gold was trading above $4,200 per ounce as the market anticipated a probable 25 basis point rate cut this week. However, recent labor data has added complexity to the medium-term policy outlook. In October 2025, job openings increased to approximately 7.67 million. This development, along with recent payroll indicators, provides the Federal Reserve with a rationale to emphasize data dependency, even as a rate cut in December remains widely expected. Futures markets are almost certain of a 25 basis point adjustment this week, sustaining expectations for immediate policy easing. Nevertheless, there is potential for a more hawkish stance if officials suggest a pause in early 2026. Despite this policy environment, bullion demand remains strong, supported by continued net purchases by central banks. Notably, China has increased its official reserves for the 13th consecutive month, bringing its holdings to about 74.12 million troy ounces. Significant central bank acquisitions, combined with substantial ETF inflows and vigorous physical buying, have propelled gold to a nearly 60% increase so far this year.