Gold prices finally weakened after strengthening for two consecutive days. Investors began taking profits after gold reached the level of US$4,200 per troy ounce. However, market participants are still closely monitoring signals of potential interest rate cuts by the U.S. central bank, The Federal Reserve (The Fed).

On Tuesday’s trading session (December 2, 2025), global gold prices dropped 0.60% to US$4.207.14 per troy ounce. This decline ended the two-day streak of rising gold prices.

Meanwhile, in today’s trading on Wednesday (December 3, 2025) as of 06:29 a.m. WIB, spot gold prices edged up 0.05% to US$4.209.22 per troy ounce.

Gold prices fell more than 1% on Tuesday as investors locked in profits after the metal hit a six-week high in the previous session, while they awaited key U.S. economic data ahead of next week’s Federal Reserve policy meeting.

“This is likely just some light profit-taking. The biggest focus for the market recently has been interest rate cut expectations, and those expectations remain relatively steady,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.

“We are in a continuation pattern that will ultimately lead to higher prices, and I still favor the idea of gold reaching US$5,000 per troy ounce early in the new year,” Grant added.

Recent data showing a gradual cooling of the U.S. economy, combined with dovish signals from Federal Reserve policymakers, have strengthened market expectations of a 25-basis-point rate cut at next week’s central bank meeting. Traders estimate an 89% probability of this policy move.

Investors are also monitoring the ADP employment report for November, set to be released on Wednesday, as well as the delayed Personal Consumption Expenditures (PCE) index for September, scheduled for release on Friday. PCE is the Fed’s preferred inflation gauge. Lower interest rates generally benefit gold, which does not yield returns.

Central banks purchased 53 tons of gold in October, marking a 36% month-on-month increase and the largest monthly net demand since early 2025, according to the World Gold Council.

Meanwhile, silver prices surged to an all-time high (ATH). In Tuesday’s trading session (December 2, 2025), spot silver (XAG) climbed 0.84% to US$58.45 per troy ounce, extending its rally to seven consecutive days. Overall, silver prices have risen more than 100% since the start of this year.

However, in today’s trading on Wednesday (December 3, 2025) as of 06:29 a.m. WIB, spot silver prices dipped 0.14% to US$58.37 per troy ounce.

“There is no new reason behind the recent surge in silver prices. However, known factors remain in place, namely tight supply, which is reflected in the low inventories on the Shanghai exchange,” Commerzbank noted in its report. The institution also added that it expects further price increases, although at a more moderate pace, toward US$59 per troy ounce next year.