The Gold price stabilized at $2,650 per troy ounce after falling in November, Commerzbank’s commodity analyst Barbara Lambrecht notes.

Gold price stabilizes at $2,650

“Today's US labor market data could influence interest rate expectations for the Fed meeting on 18 December yet again. If a rate cut in the event of disappointing labour market data were fully priced in – currently the probability is only 75% based on Fed Funds Futures – the Gold price could rise.”

“After that, the so-called ‘blackout period’ for Fed members and their statements on interest rate expectations begins on Saturday. So, barring a further escalation of geopolitical risks, the Gold price is likely to tread water again. The ECB meeting next week is not likely to have much impact on the Gold price, as another interest rate cut is already priced in.”