Gold prices fall on Thursday

Gold prices fell on Thursday as a stronger US dollar, driven by upbeat January jobs data, dampened expectations of near-term Federal Reserve rate cuts, while investors awaited key inflation figures for further policy signals.

Spot gold slipped 0.5 per cent to $5,055.24 per ounce by 0642 GMT, after gaining more than 1 per cent in the previous session. US gold futures for April delivery eased 0.4 per cent to $5,077.30.

The dollar index strengthened following data showing US job growth accelerated in January, and the unemployment rate fell to 4.3 per cent, signalling underlying economic resilience. A firmer dollar makes dollar-priced metals more expensive for holders of other currencies, weighing on demand.

Analysts said the stronger labour data prompted a modest pullback in expectations for imminent rate cuts, keeping gold vulnerable to shifts in dollar strength and bond yields. A Reuters poll indicated the Fed is likely to hold rates steady through Chair Jerome Powell’s term ending in May, with a potential cut seen in June.

Investors are now looking to US weekly jobless claims and inflation data due later this week for further clarity on the Fed’s monetary policy path.

Among other precious metals, spot silver declined 0.6 per cent to $83.49 per ounce after a sharp rise in the previous session, platinum dropped 1.1 per cent to $2,109.45, while palladium edged up 0.3 per cent to $1,705.25.

Attribution: Reuters