Gold Pulls Back as Traders Take Profits Before Fed Meeting
Gold eased on Friday, December 5, with spot prices slipping 0.24% to $4,198.69 as traders booked profits after a strong midweek surge. Prices briefly touched $4,259 before sliding toward key support near $4,192, which buyers defended into the close.
The week’s earlier rally was fueled by rising expectations of a Fed rate cut in December, with markets pricing in an 87% chance of a 25 bp move. But with gold up roughly 60% this year and well above long-term averages, many traders saw the pullback as a natural breather after failing to break resistance around $4,265.
Friday’s U.S. data offered mixed direction: core PCE dipped to 2.8%, Michigan sentiment ticked up, and inflation expectations eased slightly. Still, nothing in the numbers was strong enough to push gold to fresh highs. Meanwhile, the U.S. dollar held firm despite weak jobs data, limiting further upside for the metal.
Outlook Gold remains supported by dovish Fed expectations and ongoing geopolitical risk, but momentum has cooled. A break below $4,192 could open the way toward $4,134, while bulls will look for another test of $4,265. For now, consolidation ahead of the Fed decision seems the most likely path. #Goldpullback #BTCVSGOLD
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