Gold and silver prices edged lower in Asian trading on Thursday after stronger-than-anticipated U.S. employment figures reduced expectations for additional Federal Reserve rate cuts. Losses, however, were tempered by ongoing safe-haven demand.
Despite the pullback, precious metals held on to much of this week’s gains, supported by a softer dollar overall and continued geopolitical tensions between the United States and Iran.
Spot gold declined 0.7% to $5,051.26 per ounce, while April gold futures dropped 0.5% to $5,072.04/oz as of 01:36 ET (06:36 GMT). Spot silver slid 1.3% to $83.2505/oz, and platinum eased 1.6% to $2,107.30/oz.
Dollar rebounds after upbeat payrolls
The retreat in gold followed Wednesday’s U.S. nonfarm payrolls report, which showed January job growth exceeding expectations. The data underscored resilience in the labor market, dampening hopes that weakening employment conditions would prompt the Federal Reserve to accelerate rate reductions.
According to CME FedWatch data, markets now assign a 94.1% probability that the Fed will keep rates unchanged in March, with a 78% chance of a similar outcome in April.
The stronger jobs reading also fueled a rebound in the U.S. dollar overnight, creating headwinds for metals priced in the currency.
Still, the greenback stabilized in Asian hours and remained under some weekly pressure, partly due to renewed strength in the Japanese yen. Analysts at OCBC noted that for the dollar to stage a sustained recovery, further evidence of economic resilience in the U.S. would be required—potentially offering some support to gold in the near term.
“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.
Even so, bullion markets have remained volatile in recent sessions, reflecting heightened uncertainty around U.S. monetary policy.
Inflation data and Iran tensions ahead
Investors are now awaiting additional U.S. economic indicators, including January consumer price index data due Friday. Inflation and labor market conditions remain the Fed’s primary considerations in shaping interest rate policy.
Weekly jobless claims figures are also scheduled for release later Thursday.
At the same time, geopolitical risks continued to underpin safe-haven demand. While Washington and Tehran have reported limited progress in recent nuclear discussions, the U.S. is reportedly preparing to deploy a second aircraft carrier to the Middle East.
President Donald Trump has repeatedly urged Iran to accept a deal and met with Israeli Prime Minister Benjamin Netanyahu on Wednesday, keeping tensions in focus for global markets.
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