Private sector employment grew by 122,000 jobs in December, falling short of market expectations and showing a decline from November's figures, according to the latest ADP National Employment Report. The report also indicated a 4.6% year-over-year increase in annual pay.

The People's Bank of China (PBOC) has increased its gold holdings to 73.3 million ounces in December 2024, up from 73 million ounces in November, according to SP Angel analysts. This marks the second consecutive month of expansion following a six-month pause in purchases, potentially signaling renewed confidence in the precious metal as a strategic reserve asset.

The Federal Reserve's recent policy revision, announced at December's FOMC meeting, indicates a more conservative approach to rate cuts in the coming year. While markets previously anticipated rate cuts totaling 1%, the latest Summary of Economic Projections (SEP) suggests the Fed now plans for a more modest 0.75% reduction.

Gold futures surged significantly on the opening day of 2025, reaching a two-week high with the February contract climbing $32.10 (1.22%) to settle at $2,671.20. This follows Tuesday's gain of $19.30, resulting in a combined increase of over $60 from Monday, December 30's low of $2,608.

The financial markets enter a shortened trading period over the next two weeks as investors celebrate the holidays and the New Year. During this time, market participants continue to process the Federal Reserve's monetary policy modifications announced at last week's final FOMC meeting of the year.

Gold futures demonstrated resilience this week, finding crucial support at the $2600 level after Wednesday's close. The February contract, which opened at $2600.60 on Thursday, showed steady momentum throughout the session.

Gold futures reached a peak above $2,750 per troy ounce on Wednesday, December 11, marking the beginning of a significant price decline that would persist over the following six trading days. The selling pressure in gold pricing continued following yesterday's Federal Reserve announcement.

The Federal Reserve concluded its final FOMC meeting of the year today with an anticipated 25 basis point rate cut, setting the benchmark "Fed funds" rate between 4¼% and 4½%. However, the Fed's forward monetary policy projections for next year triggered widespread selling pressure across financial markets.

Gold continues to experience downward pressure for the fourth consecutive trading session, with the most active February futures contract dropping $6.70 to settle at $2,663.50. The US dollar index marginally increased by 0.09%, reaching 106.985, reflecting evolving market dynamics.