Gold drops from record high ahead of U.S. data

Spot gold dropped 0.4% to $3,542.97 per ounce, U.S. gold futures for December delivery slipped 0.9% to $3,601.40

 Gold prices dropped on Thursday, retreating slightly from a record high as investors locked in profits, while attention shifted to U.S. jobs data for further insight into the Federal Reserve’s policy path.

Spot gold dropped 0.4% to $3,542.97 per ounce as of 0838 GMT. U.S. gold futures for December delivery slipped 0.9% to $3,601.40.

Spot gold reached a record high of $3,578.50 on Wednesday amid rising bets for a U.S. Federal Reserve rate cut and lingering geopolitical and economic uncertainties.

The market was way overbought and needed to correct, StoneX analyst Rhona O’Connell said. If the jobless claims are way out of line, then we could see a reaction (in prices) – down if below, up if high.

The focus is now on the weekly jobless claims and the ADP report due later in the day and U.S. non-farm payrolls data due on Friday.

Job openings fell more than expected to 7.181 million in July, data showed. Meanwhile, several Fed officials said on Wednesday that labour market worries continue to animate their beliefs that rate cuts are imminent.

The market is now pricing in a 98% chance of a 25-basis-point rate cut this month, according to CME Group’s FedWatch tool.

Non-yielding gold typically performs well in a low-interest-rate environment and in times of uncertainty.

Adding to market concerns, U.S. President Donald Trump said Washington might have to “unwind” trade deals it reached with the EU, Japan, South Korea and others, if it loses a Supreme Court case over tariffs.

Should private investors diversify more heavily into gold, we see potential upside to gold prices to well above our $4,000 mid-2026 baseline, Goldman Sachs said.