Gold inches up as US unemployment rate rises in November

Gold rose on Tuesday after a US jobs report showed the unemployment rate rose last month from September, reinforcing bets of rate cuts by the US Federal Reserve and sending the dollar index lower.

Spot gold gained 0.2% to USD 4,310.21 per ounce, as of 01:48 p.m. ET (18:48 GMT). US gold futures settled 0.1% lower at USD 4,332.3.

The US dollar fell to a two-month low, making greenback-priced bullion more affordable for overseas buyers. Benchmark 10-year US Treasury yields also edged lower.

“(The) data gives the Fed more reason to cut rates, and if they cut rates, that’s bullish for gold … that’s the way the market’s interpreting it right now,” said RJO Futures senior market strategist Bob Haberkorn.

US job growth rebounded in November, but the unemployment rate was at 4.6% in the backdrop of economic uncertainty stemming from President Donald Trump’s aggressive trade policy. A Reuters survey of economists had estimated an unemployment rate of 4.4%.

Last week, the Federal Open Market Committee announced a quarter-point rate cut, and Chair Jerome Powell’s accompanying comments were perceived as less hawkish than expected.

US rate futures still expect two cuts of 25 basis points each in 2026, pricing in 59 bps of easing next year. Non-yielding gold tends to thrive in a low-interest rate environment.

Investors await November’s Consumer Price index, due on Thursday, and Personal Consumption Expenditures index, due on Friday.

If gold finishes 2025 above USD 4,400, then it could see USD 4,859-USD 5,590 in 2026, said Alex Ebkarian, COO at Allegiance Gold, and added that silver could retest the USD 50/oz level next year.

Spot silver fell 0.3% to USD 63.75 an ounce, retreating from a record high of USD 64.65 on Friday. Platinum rose 4% to USD 1,854.95, its highest level since September 2011, and palladium gained 2.5% to USD 1,606.41, hitting a two-month high.

“Platinum group metals are breaking out as supply tightens and demand expands,” Ebkarian noted.

(Reporting by Sarah Qureshi, Noel John, and Anmol Choubey in Bengaluru; Editing by Sahal Muhammed)