Gold traded lower for the third consecutive session in midday European trading on Thursday, December 4th, falling below $4,200 an ounce. The US dollar index remained stable as markets awaited the Federal Reserve meeting next week. Central banks increased their purchases of the precious metal, which was down approximately 0.41% at $4,188 an ounce. Silver traded at $57.33 an ounce, down 1.98% from Wednesday’s record high of $58.97 an ounce, amid profit-taking by investors.

Market expectations currently favor a 25-basis-point interest rate cut by the Federal Reserve at its meeting on December 10th. According to the CME FedWatch tool, markets are pricing in an 89% probability of a rate cut.

Data from the World Gold Council’s monthly report showed that global central banks increased their gold purchases by 53 tons in October, a 36% increase month-on-month. The Polish and Brazilian central banks led the way with purchases of 16 tons each, while the Russian central bank’s reserves decreased by 3 tons in October.

On the economic data front, the US Labor Department announced moments ago that initial claims for state unemployment benefits reached 191,000 last week, ending November 29th. This represents a decrease of 27,000 claims from the revised previous week, marking the lowest level of claims since September 2022.

Meanwhile, US employers reported layoffs of 71,321 employees in November, a 24% increase compared to November of last year, according to the Challenger report released today.

Markets are awaiting the consumer spending inflation figures, the Federal Reserve’s preferred inflation gauge, at the close of trading tomorrow, Friday. This is the last major data release before the Fed’s meeting next week.

Silver, which has seen gains of over 100%, surpassing gold’s gains of over 60% so far, is on track for its best annual performance since 1979. This surge is fueled by continued strong demand for gold from central banks, sustained inflows into silver exchange-traded funds (ETFs), and record-low silver supply. Investors are also anticipating potential tariffs on silver in the United States following its inclusion in the U.S. Geological Survey’s list of base metals last month.

Platinum is trading at $1,640, down 1.87%, while palladium is down approximately 0.94%, trading at $1,446.