07.01.202615:31:14UTC+00Gold Slides on Profit-Taking as Focus Shifts to US Data

Gold prices receded to around $4,440 per ounce on Wednesday as investors capitalized on recent gains and redirected their attention from geopolitical tensions to upcoming US economic data. After President Donald Trump announced that Venezuela would provide up to 50 million barrels of oil to the United States, geopolitical concerns moderated slightly. However, Washington remained noncommittal about ruling out military action concerning Greenland.

In economic developments, the ADP report revealed that US private-sector employment increased by 41,000 in December, falling short of the anticipated 47,000 rise. Furthermore, job openings dropped unexpectedly to a one-year low. In contrast, the ISM PMI indicated that the services sector is expanding at its fastest rate since October 2024, surpassing expectations. Investors are now keenly anticipating the release of Friday's nonfarm payrolls report to glean insights into the Federal Reserve's policy stance. Neel Kashkari, an FOMC member, recently highlighted that rising unemployment might heighten the chances of interest rate cuts, with markets currently forecasting two reductions for the year.