Gold remains range-bound as markets adopt a cautious stance ahead of key U.S. employment data and Federal Reserve Chair Jerome Powell’s upcoming remarks. Powell’s comments, that come before the Federal Reserve’s December 18 meeting, are highly anticipated for potential insights into the central bank’s approach to interest rate adjustments. The measured tone from Fed officials emphasizes the uncertainty surrounding policy direction.

Market participants are closely monitoring the potential impact of Donald Trump’s re-election, with expectations that expansionary fiscal policies could add to inflationary pressures. This has led to speculation that the Federal Reserve may take a more conservative approach to interest rate cuts, possibly extending into 2025, which could weigh on gold. Additionally, today’s ADP employment report and Friday’s U.S. payrolls data are expected to provide key insights for the Fed’s upcoming policy decisions, particularly as it focuses on labor market strength.

At the same time, gold could continue to find support as traders face key geopolitical risks, concerns over President-elect Trump’s proposed tariff measures, and political instability in South Korea and France. These factors could reinforce the demand for gold as a safe-haven asset amidst broader economic and political uncertainties.