On December 5, London spot gold initially dipped before rising overnight, with COMEX gold futures gaining 0.44% and SHFE gold edging up 0.09%. Market sentiment shifted as expectations grew for a potential Bank of Japan rate hike this month, pushing the yen to a two-week high. The dollar index briefly hit a one-month low before reversing course.

Geopolitical tensions remain elevated as Russia-Ukraine negotiations reach an impasse, with Moscow rejecting certain "peace agreement" terms due to unresolved disputes over territorial control. Investors are monitoring upcoming talks between Ukraine and the US. Gold prices consolidated within a narrow range near recent highs, with attention turning to next week's Federal Reserve meeting.

US initial jobless claims unexpectedly dropped to 191,000 for the week ending November 29 - the lowest level since 2022 and significantly below market expectations of 220,000. The sharp 27,000-claim decrease suggests limited corporate layoffs and continued labor market resilience, though holiday-related volatility may have influenced the data.

Market speculation suggests the Bank of Japan may raise its policy rate from 0.5% to 0.75% this month, which would mark its first hike since January. Such a move could trigger unwinding of yen carry trades, potentially pressuring global risk assets - particularly dollar-denominated instruments.

With Fed rate cut probabilities for December now priced at approximately 90%, the BOJ's potential policy shift has revived safe-haven demand. This dynamic fueled the dollar's rebound from lows while supporting gold prices, though silver, platinum and palladium underperformed. Investors should remain cautious about technical pullback risks when markets become overheated, as any "buy the rumor, sell the fact" scenario could trigger sharp corrections - particularly in the more volatile silver, platinum and palladium markets compared to gold.