Gold recovered on Thursday but remained below its opening price for the fifth straight day, undermined by the Greenback's rise for the fifth straight day. A tepid US inflation report and solid jobs data sponsored the XAU/USD's decline towards the 100-day Simple Moving Average (SMA). At the time of writing, gold was trading at $2,568.

The market mood shifted negative but failed to boost Gold prices and support the US Dollar. The US Bureau of Labor Statistics revealed that the Producer Price Index (PPI) rose in October, beating estimates and the September reading.

This suggests that the Federal Reserve's (Fed) work is far from done, even as the central bank embarked on an easing cycle that has seen the Fed cut its key interest rate instrument by 75 basis points since September 2024.

At the same time, the US Department of Labor revealed that jobless claims filed by Americans eased compared to the previous reading.

Fed officials have recently underlined the delicate balance of balancing inflation control with employment goals. Governor Adriana Kugler stressed the importance of addressing both mandates, noting that while steps have been taken to reduce inflation, achieving the 2% target remains a challenge.

Similarly, Richmond Fed President Thomas Barkin acknowledged progress in curbing inflation but cautioned against premature optimism. He noted risks such as a substantial union wage settlement and potential tariff hikes, which could stoke inflationary pressures.

Gold has been hurt by investor concerns that US President-elect Donald Trump's proposed tariffs and tax cuts are likely to raise inflation, which could prompt the Fed to pause its easing cycle.

Market participants see a 72% chance that the Fed will cut interest rates by a quarter of a percentage point at its December meeting, down from 82% the day before.

Investors are awaiting remarks from Fed Chair Jerome Powell on Thursday along with US Retail Sales data on Friday.

Source: FXStreet