FX.co ★ Gold Trims Some Losses After Labor Data

Gold prices remained below $4,600 per ounce on Thursday, driven by profit-taking activities following the recent record highs. This movement was supported by strong U.S. labor market indicators and diminished political risks, which collectively reduced the demand for gold as a safe haven. The number of initial jobless claims significantly decreased to approximately 198,000, while continuing claims hovered around 1.884 million. This data reinforces the perception that layoffs are well-contained, subsequently reducing the Federal Reserve's necessity to alter its policy to bolster employment. Although the November Producer Price Index (PPI) recorded a lower-than-expected outcome and core prices stalled—consistent with a subdued December Consumer Price Index (CPI)—speculative anticipation for multiple Fed rate cuts later this year remains strong, offering medium-term support for gold. Additionally, the political risk premium diminished after President Trump indicated a more moderate approach toward Iran and emphasized no immediate intentions to replace Federal Reserve Chair Jerome Powell.