Gold continued to trade in the red on Thursday for the fifth day in a row following the positive trend of the United States (US) dollar.
At 9.30am, the price of gold was at $2,566.35 which is unchanged since it opened in early trading on Friday in the Asian session.
US inflation reports rebounded somewhat and strong jobs data pushed the yellow metal down from the highs of the past few weeks.
The US Bureau of Labor Statistics revealed that the Producer Price Index (PPI) rose in October above estimates and the September figure.
However, the mission of the Federal Reserve (Fed) is not yet complete at the end of the year even though the central bank has started a policy easing cycle of 75 basis points of interest rate cuts since September 2024.
Additionally, the US Department of Labor revealed that US jobless claims decreased compared to the previous reading.
Fed officials have recently emphasized the delicate act of balancing inflation control with employment goals.
Fed Governor Adriana Kugler emphasized the importance of addressing both issues showing that steps have been taken towards reducing inflation to reach the 2% target is still challenging.
The gold market is now increasingly affected by investor concerns about the proposed tax cuts in Donald Trump's mandate that could increase inflation and prompt the Fed to stop its easing cycle.
