Gold Prices Fall More Than 1% as Oil Rises and Investors Await U.S. Jobs Data
Gold prices fell by more than 1% during Friday’s trading, affected by rising crude oil prices and renewed concerns about inflation, which reinforced expectations that U.S. interest rates will remain high for a longer period.
This decline comes as investors await the release of the U.S. nonfarm payrolls report, looking for new clues regarding the Federal Reserve’s monetary policy direction.
The price of gold in spot trading fell by more than 1% to $4,040 per ounce, while U.S. gold futures for December delivery declined by 1.4% to $4,056.90 per ounce.
Despite this decline, gold remained on track to post its best weekly performance since late August.
Rising Oil Prices Add Pressure on Gold
Gold’s decline coincided with a more than 1% rebound in oil prices during Friday’s trading session, following sharp losses throughout the week, amid ongoing uncertainty regarding oil supplies from the Middle East.
The recovery in crude oil prices over the past day represents one of the inflationary factors putting pressure on gold prices.
Rising energy costs typically fuel concerns about persistent inflationary pressures, which could prompt the U.S. Federal Reserve to keep interest rates high for a longer period.
Stock Market Decline Increases Selling Pressure on Gold
In global markets, Asian stocks—particularly tech stocks—saw sharp declines amid concerns over tighter regulatory restrictions and a slowdown in the expansion of artificial intelligence technologies.
The sell-off spread to U.S. markets, which recorded their biggest decline since the market crash in April 2025, driven by concerns over tariffs.
U.S. Jobs Data to Determine Direction of Gold
Prices Investors are turning their attention to the U.S. nonfarm payrolls report, scheduled for release today at 3:30 p.m.
Egypt time, as it may provide important indicators regarding the strength of the labor market and the trajectory of U.S. monetary policy in the coming period.
The data takes on particular importance amid growing expectations of another potential interest rate hike.
According to the “FedWatch” tool, the probability of a U.S. interest rate hike in December stands at about 67%, compared to more hawkish forecasts last month.
On Thursday, two Federal Reserve officials called for continuing to raise interest rates at a moderate and steady pace, with the aim of bringing inflation—which remains above target—under control.
Stronger-than-expected jobs data would bolster the likelihood of monetary policy tightening, which could increase pressure on gold. Conversely, weak data could provide some support for gold if it helps dampen expectations for rate hikes.
Goldman Sachs Lowers Its Gold Price Forecast for 2026
In another development, Goldman Sachs lowered its gold price forecast for the end of 2026 to $4,150 per ounce, down from its previous estimate of $4,650.
The bank attributed this adjustment to the Federal Reserve adopting a more hawkish stance on monetary policy, amid persistent inflationary pressures and increasing prospects for U.S. interest rate hikes.
The downward revision reflects continued caution regarding the outlook for the gold market, especially as the yellow metal’s movements are influenced by interest rate expectations, the strength of the dollar, and developments in the energy markets.
Precious metal price movements remain linked to inflation trends and U.S. interest rates, as well as dollar trends and levels of investment demand, with markets awaiting U.S. jobs data that could determine the direction of trading in the coming period.
