Gold: XAU Slides on Profit-Taking as Focus Shifts to US Data.

Gold slipped to around $4,425 per ounce Wednesday, as investors locked in profits after strong recent gains and shifted focus from geopolitical risks to incoming US economic data. Geopolitical concerns eased somewhat after President Donald Trump said Venezuela would supply up to 50 million barrels of oil to the US. At the same time, Washington declined to rule out military action to acquire Greenland. On the data front, the ADP report showed US private-sector employment rose by 41K in December, missing expectations for a 47K gain, while job openings unexpectedly fell to a one-year low. By contrast, the ISM PMI indicated services-sector activity expanded at its fastest pace since October 2024, beating forecasts. Investors are now awaiting Friday’s nonfarm payrolls report for further clues on the Fed’s policy outlook. FOMC member Neel Kashkari recently noted that rising unemployment could increase the likelihood of rate cuts, with markets currently pricing in two reductions this year.