Gold and silver prices moved lower in Asian trading on Thursday after stronger-than-anticipated U.S. employment figures dampened hopes for additional interest rate cuts from the Federal Reserve. Even so, declines were cushioned by continued demand for safe-haven assets.
Despite the pullback, precious metals have held on to most of this week’s gains, supported by broader softness in the dollar and ongoing geopolitical tensions between the United States and Iran.
Spot gold slipped 0.7% to $5,051.26 per ounce, while April gold futures eased 0.5% to $5,072.04 per ounce as of 01:36 ET (06:36 GMT). Spot silver dropped 1.3% to $83.2505 per ounce, and platinum declined 1.6% to $2,107.30 per ounce.
Dollar firms after robust payrolls report
Gold came under pressure following Wednesday’s nonfarm payrolls report, which showed January job growth exceeding forecasts. The data highlighted continued resilience in the U.S. labor market, reducing expectations that softer employment conditions would prompt further rate reductions from the Fed.
According to CME FedWatch data, markets are now pricing in a 94.1% probability that the Fed will leave rates unchanged in March and a 78% likelihood of a similar decision in April.
The upbeat labor data also sparked a rebound in the dollar overnight, weighing on dollar-denominated commodities such as gold and silver.
Still, the greenback steadied during Asian hours and remains under some pressure for the week, partly due to strength in the Japanese yen. Analysts at OCBC said a sustained dollar recovery would require additional signs of economic resilience in the United States.
“Structural drags — Fed succession uncertainty and broader US policy risks — mean the USD will still need additional upside surprises in upcoming data to sustain any rebound,” OCBC analysts said.
Volatility in precious metals has persisted amid shifting expectations around U.S. monetary policy.
Inflation data and Iran tensions in focus
Investors are now turning their attention to January U.S. consumer price index data due Friday, which, along with labor market trends, plays a central role in the Fed’s rate decisions.
Weekly jobless claims figures are also scheduled for release later Thursday.
Meanwhile, geopolitical concerns continue to underpin haven demand. Although Washington and Tehran have indicated some progress in recent nuclear discussions, reports suggest the U.S. is considering deploying a second aircraft carrier to the Middle East.
President Donald Trump has repeatedly urged Iran to reach an agreement with Washington and held talks on Wednesday with Israeli Prime Minister Benjamin Netanyahu, keeping markets alert to potential developments in the region.