Decline in Gold Prices Amid Anticipation of US Labor Market Data and Goldman Sachs Adjustments

Gold prices have declined as markets await critical US labor market data and Goldman Sachs revises its outlook for the future of the precious metal.

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Labor Data
Gold Forecasts

Labor Data

Gold prices dropped during Monday’s trading as investors focused on upcoming US labor market data scheduled for release this week.
Gold futures fell as investors anticipated the monthly jobs report and unemployment data, due Friday.
These figures are expected to show a slowdown in the labor market,
with only 154,000 jobs added in December compared to 227,000 in the previous month.

Additionally, investors are awaiting the Federal Reserve’s meeting minutes, due Wednesday,
to better understand the reasons behind the recent interest rate cuts and their implications for monetary policy in 2025.

Gold Forecasts

In a related development, Goldman Sachs revised its forecast for gold prices,
now expecting them to reach $3,000 per ounce by mid-2026 instead of the end of this year.
The bank attributed this change to slower-than-expected monetary easing by the Federal Reserve
and weaker demand for gold-backed exchange-traded funds (ETFs).

Goldman Sachs also highlighted continued central bank purchases as a key factor supporting long-term prices.
The bank projects average monthly purchases to reach 38 tons by mid-2026.

This adjustment comes after gold prices surged by 27% in 2024, driven by safe-haven demand.
However, the rally paused following the US elections.

Decline in Gold Prices Amid Anticipation of US Labor Market Data

Decline in Gold Prices Amid Anticipation of US Labor Market Data

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