Gold prices fell more than 1% on Thursday (November 20th), pressured by a stronger dollar and fading expectations of a Federal Reserve interest rate cut in December, as investors awaited the delayed US employment report later in the day.

Spot gold fell 0.4% to $4,066.32 an ounce, as of 09:20 GMT, after falling more than 1% earlier in the session. US gold futures for December delivery fell 0.4% to $4,065.30 an ounce.

The dollar index strengthened near a two-week high, making gold more expensive for holders of other currencies. "The strengthening dollar is weighing on gold, but these price fluctuations are typical in periods like this where we have good two-way trading with profit-taking and book value adjustments meeting initial investment needs ahead of the new year," said independent analyst Ross Norman.

The minutes of the Fed's October meeting, released on Wednesday, showed the Fed cut interest rates despite policymakers warning that doing so could risk worsening inflation and eroding public confidence in the US central bank.

Traders are now focusing on the September jobs report, which was delayed due to the government shutdown, for clues on the Fed's next move. September nonfarm payrolls likely rose by 50,000, more than double the 22,000 increase in August, according to a Reuters survey.

The Fed will still be short on data at its December 10 policy meeting, as the next jobs report has been delayed until December 16.

Traders now see a nearly 34% chance of a rate cut next month, down from 49% on Wednesday, according to the CME Group's FedWatch tool.

Non-yielding gold tends to perform well in low-interest-rate environments and during times of economic uncertainty.

Meanwhile, UBS raised its mid-2026 gold price target by $300 to $4,500 per ounce, driven by expectations of a Federal Reserve interest rate cut, ongoing geopolitical risks, and strong demand for central banks and ETFs.

Elsewhere, spot silver fell 1% to $50.87 per ounce, platinum rose 0.4% to $1,551.69, and palladium rose 1.8% to $1,404.76. (alg)

Source: Reuters.com