Gold prices edged higher on Wednesday (December 3) after weak private-sector employment data reinforced expectations that the U.S. will cut interest rates next week.
At the close of trading on December 3, spot gold rose 0.1% to $4,209.31/oz, after falling more than 1% in the previous session. Gold futures added 0.5% to $4,241.20/oz.
ADP’s employment report showed that the U.S. private sector shed 32,000 jobs in November 2025, completely contradicting economists’ forecasts for a gain of 10,000 jobs.
The U.S. dollar index fell 0.5% to its lowest level since October 29, making gold more attractive to holders of other currencies.
The CME FedWatch Tool indicated an 89% probability that the Fed will cut interest rates next week, while major brokerage firms also expect a rate reduction at the policy meeting on December 9–10.
Markets are still awaiting September 2025 Personal Consumption Expenditures (PCE) data—the Fed’s preferred inflation gauge—due on December 5.
Lower interest rates tend to support non-yielding assets such as gold.
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