Gold rises as the dollar weakens and the world awaits US jobs data
Gold prices are trading today, Wednesday, December 17, 2025, near levels of $4320-$4346 per ounce, approaching again its historic peak recorded last October at levels of $4382, supported by increasing positive momentum in the markets.This strong move came as a result of the convergence of two key factors: the deterioration of US labor market data and the return of geopolitical tensions to the forefront, which has boosted demand for the yellow metal as a safe haven in an uncertain environment.
On the economic data front, gold prices received direct support from the delayed US jobs report, which revealed a weaker-than-expected picture of the economy. Despite the addition of 64,000 jobs in November, a revised October figure showed a loss of 105,000 jobs.This is in addition to the rise in the unemployment rate to 4.6%. These developments have led markets to price in broader expectations of monetary policy easing, with a cumulative interest rate cut of around 58-59 basis points expected during 2026, which provides a favorable environment for non-yielding assets, most notably gold.
Gold price forecast for the coming days
What’s happening:-
Gold prices rose this morning as investors turned to safe havens following the latest jobs report from the US.
What happened:-
The US reported data for October and November, as the report had been delayed due to the prolonged federal shutdown.
Job losses in October and a surge in November’s unemployment rate sent the US dollar lower, lending support to gold.
Why it matters:-
Markets grew concerned after the Bureau of Labor Statistics reported that the US economy lost 105,000 jobs in October. Data also showed that the US added 64,000 jobs in November, higher than market estimates of 50,000.
However, this was not enough to contain the unemployment rate, which rose to 4.6%, higher than market estimates of 4.4%. This also marked the highest reading since September 2021.
Average hourly earnings rose 0.1% to $36.86 in November, easing from 0.4% growth in October and missing market estimates of 0.3%. This was the smallest increase in wages since August 2023.
Meanwhile, retail sales came in flat for November, due to declines at auto dealers and gasoline stations, while spending remained firmer across various other categories.
Gold price over the coming days
Although the Fed cut its benchmark interest rate by 25 bps last week, the reports triggered speculations of two cuts of 25 bps each next year. Non-yielding gold generally sees higher demand in a low-rate environment.
Although optimism around progress in peace talks between Russia and Ukraine briefly weighed on gold prices earlier in the session on Tuesday, geopolitical uncertainty and persistent purchases of the yellow metal by central banks lent support.
Weakness in the US dollar provided a further boost to gold prices, as a softer greenback makes metals cheaper for foreign currency holders. The US dollar index, which measures the greenback’s performance versus a basket of major peers, dipped to a two-month low on Tuesday.
Spot gold rose 0.2% on Tuesday, extending gains this morning, surging around 0.4% to $4,320.99 an ounce.
Gold price
In other metals trading, spot silver prices rose 2.8% to $65.5475 an ounce this morning, platinum prices gained 2.6% to $1,892.45 and palladium added 0.1% to reach $1,601.80.
What to watch:-
Investors await the release of economic data on November’s consumer price index from the US, scheduled for release on Thursday. The annual inflation rate in the US surged to 3% in September, reaching the highest reading since January.