After several sessions in positive territory, gold prices edged lower in early Tuesday trading, coming under pressure from profit-taking and renewed optimism surrounding potential peace negotiations in Ukraine. However, losses in the precious metal remain limited due to the bearish outlook for the US dollar. Against this backdrop, gold traders will be closely monitoring the delayed release of US labour market data for October and November. For an extended period, the Federal Reserve was operating with limited visibility due to the US government shutdown, during which its stance turned more dovish. This culminated in an interest rate cut last week, while leaving the door open for further easing in 2026. Today’s data releases should provide greater clarity on the health of the US labour market and may influence expectations around the Federal Reserve’s future monetary policy. Stronger-than-expected figures would likely support the US dollar and could exert downward pressure on gold prices. Conversely, weaker labour data would reinforce expectations of further rate cuts, weigh on the dollar, and support gold, given the inverse relationship between the two assets.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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