Gold ticks higher as US unemployment climbs in November

Gold climbed on Wednesday (Dec 17) after a US jobs report showed the unemployment rate rose in November, buoying bets of further US interest rate cuts next year while pressuring the US dollar and yields.

Spot gold gained 0.4 per cent to US$4,318.37 per ounce, as at 9.17 am. US gold futures gained 0.3 per cent to US$4,347.10.

The US dollar fell to a more than two-month low on Tuesday, making greenback-priced bullion more affordable for overseas buyers. Benchmark 10-year US Treasury yields also fell after data showed an unexpected increase in the unemployment rate last month.

The US unemployment rate was at 4.6 per cent for the month of November, exceeding a Reuters survey of economists’ estimate of 4.4 per cent, stemming from economic uncertainty as a result of US President Donald Trump’s aggressive trade policy.

Last week, the US Federal Reserve delivered a third and last quarter-point interest rate cut for the year, while chair Jerome Powell’s accompanying comments were perceived as less hawkish than expected.

Traders still expect two cuts of 25 basis points each in 2026. Non-yielding gold tends to thrive in a low-interest rate environment.

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Investors await November’s Consumer Price index, due on Thursday, and Personal Consumption Expenditures index, the Fed’s preferred gauge of inflation, due on Friday.

Meanwhile, US Treasury Secretary Scott Bessent said on Tuesday that both Kevin Warsh and Kevin Hassett were qualified to lead the Federal Reserve, adding that any candidate Trump picks for the job needs to have “an open mind”.

Spot silver added 0.8 per cent to US$64.30 an ounce, after hitting a record high of US$64.65 on Friday. Platinum rose 1 per cent to US$1,869.06, and palladium lost 0.2 per cent to US$1,600.19. REUTERS

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