Gold prices fall on Monday

Gold prices fell 0.4 per cent to $4,658.90 per ounce on Monday as a stronger US dollar, supported by robust U.S. jobs data, reduced expectations for interest rate cuts, while markets awaited remarks from Donald Trump amid escalating tensions with Iran.

US gold futures for April delivery edged up 0.1 per cent to $4,684.30 in thin trading due to holiday closures across parts of Asia and Europe. The dollar index and 10-year US Treasury yields rose after data showed nonfarm payrolls recorded their strongest increase since December 2024, with the unemployment rate easing to 4.3 per cent.

Investor focus remained on geopolitical developments, as Trump threatened action if Tehran does not reopen the Strait of Hormuz, though reports suggested Iran is unlikely to do so soon. An Axios report also indicated ongoing discussions between the US, Iran, and mediators over a potential 45-day ceasefire.

Meanwhile, rising oil prices driven by the conflict heightened inflation concerns, further weighing on gold, as higher interest rates reduce the appeal of the non-yielding metal. Traders have largely ruled out US Federal Reserve rate cuts this year, compared with expectations for two reductions before the outbreak of the Iran conflict.

Attribution: Reuters