Gold prices experienced a moderate decline on Thursday, with the February futures contract settling at $2,653.90, down $20.30 or 0.76%. The precious metal's potential losses were mitigated by a concurrent weakening of the US dollar, which dropped 0.58% to 105.692 on the index.
Economists anticipate tomorrow's nonfarm payrolls report will reveal approximately 200,000 new jobs added in November. This projection is critical, as it will likely shape the Federal Reserve's approach to interest rate normalization at its final Federal Open Market Committee meeting on December 18.
If the anticipated rate cut materializes, the Fed's benchmark overnight lending rate would be reduced by a full percentage point, bringing it to a range between 4.25% and 4.50%. This strategic adjustment reflects the central bank's ongoing efforts to balance economic growth with inflation control.