Gold prices continued to ease during Asian trading on Thursday, extending a pullback from early-week highs as a firmer U.S. dollar reduced demand for bullion ahead of closely watched U.S. labour market data.
Spot gold was down 0.5% at $4,436.62 per ounce by 06:40 GMT, while U.S. gold futures slipped 0.4% to $4,442.86 per ounce, as investors took profits following the recent rally. The dollar’s strength, which makes gold more expensive for buyers using other currencies, remained a key headwind. The U.S. Dollar Index was steady after rising for two consecutive sessions.
Market participants stayed cautious ahead of Friday’s U.S. nonfarm payrolls report, a critical release that could influence expectations for Federal Reserve interest rate policy. Weaker employment data could revive bets on rate cuts, potentially restoring support for gold as yields fall.
U.S.–Venezuela tensions limit downside
Geopolitical developments helped temper gold’s losses, with continued tensions between the United States and Venezuela sustaining some safe-haven interest.
On Wednesday, U.S. forces seized two oil tankers linked to Venezuelan crude shipments, including one sailing under a Russian flag, marking a further escalation in Washington’s enforcement of sanctions on Venezuelan oil exports. U.S. officials said the actions were intended to disrupt sanctioned oil flows that help finance the Venezuelan government while bypassing U.S. restrictions.
The seizure of a tanker flying a Russian flag has prompted a sharp response from Moscow, which reportedly described the move as “blatant piracy” and demanded the return of Russian nationals among the vessel’s crew.
For gold markets, the heightened U.S.–Venezuela standoff provided some support to safe-haven demand, even as traders awaited clearer direction from Friday’s payrolls figures.
Broader metals complex weakens
Other metals also came under pressure on Thursday. Silver prices fell 2.3% to $76.32 per ounce, while platinum dropped 4.3% to $2,207.60 per ounce.
In base metals, benchmark copper futures on the London Metal Exchange slipped 0.3% to $12,854.20 per tonne, while U.S. copper futures were little changed at $5.85 per pound.