Gold rallies above $4,100 as NASDAQ 100 crashes, December hike bets fade

Gold prices have climbed above $4,100 on Thursday, following a drop in the NASDAQ 100 and cautious remarks from Federal Reserve officials. The precious metal trades higher after bouncing off a low of $4,057. Risk appetite has soured as the tech-heavy NASDAQ 100 index fell nearly 5.9% in a sharp sell-off, with investors moving from tech stocks to more defensive investments.

The other two major US indices, the Dow Jones and S&P 500, also declined by 2.9% and 3.8% respectively, amid the aftermath of the Democratic victory in the US midterm elections. The US Dollar Index (DXY), which measures the dollar's performance against six major currencies, remains stable at 101.46, after recovering from a low of 101.19.

US job data was stronger than expected, with initial jobless claims dropping to 189K for the week ending October 31, below the forecasted 196K. Federal Reserve officials, including Cleveland Fed President Beth Hammack and Richmond Fed President Thomas Barkin, mentioned a gradual approach to rate increases, suggesting more work needs to be done.

Meanwhile, US Treasury yields are falling due to lower inflation expectations, with the 10-year Treasury note yielding 4.829%, down six basis points. The market is now focused on October's Nonfarm Payrolls (NFP) figures, anticipated to rise to 65K from 29K in the previous month, along with an unchanged Unemployment Rate of 2.9%.