Gold prices slipped further on Thursday during Asian hours, extending a pullback from earlier weekly gains as a stronger U.S. dollar dampened demand for the metal ahead of critical U.S. employment data.
By 06:40 GMT, spot gold was down 0.5% at $4,436.62 per ounce, while U.S. gold futures fell 0.4% to $4,442.86 per ounce, with investors taking profits after the recent surge. The firmer dollar continued to pressure bullion by making it more expensive for buyers using other currencies. The U.S. Dollar Index was steady after climbing for two straight sessions.
Market participants remained cautious ahead of Friday’s U.S. nonfarm payrolls report, a closely watched indicator that could influence expectations around Federal Reserve interest rate policy. Softer labour market data could strengthen the case for rate cuts, potentially improving gold’s appeal in a lower-yield environment.
U.S.–Venezuela tensions provide partial support
Geopolitical risks helped limit gold’s downside, as ongoing tensions between Washington and Caracas continued to underpin some safe-haven demand.
On Wednesday, U.S. forces seized two oil tankers linked to Venezuelan crude shipments, including one sailing under a Russian flag, in what marked a further escalation of enforcement actions targeting Venezuela’s oil exports. U.S. officials said the move was intended to disrupt sanctioned oil flows that support the Venezuelan government while bypassing U.S. restrictions.
The seizure of a vessel flying a Russian flag drew sharp criticism from Moscow, which reportedly described the action as “blatant piracy” and demanded the return of Russian nationals among the crew.
For gold markets, the flare-up in U.S.–Venezuela tensions offered some support to safe-haven buying, even as investors awaited clearer direction from Friday’s employment figures.
Broader metals market under pressure
Elsewhere in the metals complex, prices were broadly lower on Thursday.
Silver 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 declined 0.3% to $12,854.20 per tonne, while U.S. copper futures were little changed at $5.85 per pound.
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