NEW YORK, 20 November 2025 — Gold prices steadied on Thursday after a mixed U.S. jobs report that dampened expectations for a near-term interest-rate cut by the Federal Reserve. The muted implications for monetary easing have reduced one of the key tailwinds for the non-yielding metal.
According to Reuters, spot gold was down about 0.4% to US$4,063.81 per ounce, while U.S. December-delivery gold futures fell 0.5% to US$4,063.60. The U.S. dollar index rose to a two-week high, making gold more expensive for foreign-currency investors.
What Happened & Why It Matters
The underlying dynamics:
- Markets pared rate-cut expectations for December sharply, from ~49% to ~33% per the CME FedWatch tool, after the Fed’s October meeting minutes revealed caution about cutting rates amid inflation risks.
- A firmer dollar further weighed on gold, which tends to thrive in low-rate and weak-dollar environments.
- Gold’s near-term upside is constrained by the absence of fresh catalysts and growing confidence in the U.S. economy.
For investors in the Asia-Pacific region, including Malaysia, this signals a shift: the metals rally may be under pressure unless a stronger macro-trigger emerges or rates are explicitly cut.
What to Watch
- Whether upcoming data (including the delayed non-farm payrolls) resurrects hopes for rate cuts and bolsters gold.
- How much the dollar continues to strengthen, since a rising dollar often undermines gold demand.
- Central-bank and institutional buying, if major buyers step in, gold may still gain support.
- Regional interest in gold as a hedge, Southeast Asian investors might lean into gold if global uncertainty resurfaces.
