Gold prices saw a muted start on Thursday, January 8, after sliding more than 1% in the previous session, as investors booked profits following a sharp recent rally. However, losses were partially capped after weaker-than-expected U.S. labour market data strengthened expectations of interest rate cuts by the Federal Reserve.
According to Reuters, spot gold was down 0.9% at $4,445.32 per ounce as of 1:36 p.m. ET (1836 GMT). During the session, prices had fallen as much as 1.7% to $4,422.89 per ounce, before recovering part of the losses.
Market participants attributed the pullback largely to profit-taking. David Meger, director of metals trading at High Ridge Futures, said the decline reflected routine booking of gains after the strong upward move seen in recent sessions. He added that despite the near-term correction, softer U.S. employment data continues to underpin gold prices by reinforcing expectations of monetary easing.
U.S. job openings declined more than expected in November after a marginal rise in October, while a separate ADP report showed private-sector payroll growth in December was weaker than anticipated. These data points have strengthened the view that the Federal Reserve could begin easing policy later this year.
According to data compiled by LSEG, markets are currently pricing in around 61 basis points of rate cuts in 2026. Investor attention is now firmly on Friday’s U.S. nonfarm payrolls report, which is expected to provide further clarity on the strength of the labour market and the future path of interest rates.