Jan 7 (Reuters) – Gold prices fell more than 1% on Wednesday as investors booked profits after a recent rally, though it pared some losses after weaker-than-expected U.S. jobs data bolstered bets of Federal Reserve rate cuts.
Spot gold dropped 0.9% to $4,445.32 per ounce, as of 1:36 p.m. ET (1836 GMT). Prices fell as much as 1.7% to $4,422.89 earlier in the session.
U.S. gold futures for February delivery settled 0.7% lower at $4,462.50.
“We’re viewing today’s pullback as general profit taking after that recent surge,” said David Meger, director of metals trading at High Ridge Futures.
But softer employment data continues to support the case for Fed easing, which has underpinned gold prices recently, Meger added.
U.S. job openings fell more than expected in November after rising marginally in October, while a separate ADP report showed that private payrolls increased less than expected in December.
Markets anticipate 61 basis points of rate cuts this year, according to data compiled by LSEG. Focus now turns to Friday’s nonfarm payrolls report.
Meanwhile, geopolitical uncertainty persisted following Venezuelan President Nicolas Maduro’s capture over the weekend, with U.S. President Donald Trump announcing plans on Tuesday to refine and sell Venezuelan crude, while the White House separately confirmed discussions about acquiring Greenland, including potential military involvement.
Elsewhere, China’s central bank extended its gold-buying streak to a 14th straight month in December, according to official data.
The data from China “continues to show strong demand that we’re seeing from Asia … and again, one more reason why we’ve seen this recent push to the upside,” Meger said.
Gold, a non-yielding safe-haven asset, tends to benefit in low-rate environments and during times of uncertainty.
Among other metals, spot silver lost 4.1% to $77.93 per ounce.
HSBC raised its 2026 silver price forecast to $68.25 but warned of volatility as supply eases, while Goldman Sachs sees thin London inventories driving sharp swings and squeeze‑led rallies that may later reverse.
Spot platinum dropped 6.5% to $2,285.75, while palladium traded 5.2% lower at $1,727.40.
(Reporting by Anmol Choubey in Bengaluru; Editing by Sahal Muhammed, Varun H K and Alan Barona)
