NEW YORK: Gold prices ticked lower on Thursday, after unexpectedly strong US jobs data for January tempered expectations of more near-term interest rate cuts by the Federal Reserve.
Spot gold edged 0.3percent lower to USD5,062.83 per ounce by 1159 GMT. US gold futures for April delivery fell 0.3percent to USD5,084.30 per ounce.
Spot silver was down 0.6percent at USD83.52 per ounce, after Wednesday’s 4percent climb. “Gold eased back from above USD5,100 and silver from above USD86 after stronger-than-expected US jobs data tempered expectations of imminent Fed rate cuts, lifting the dollar,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Fed policymakers are likely to keep interest rates on hold for longer after data on Wednesday showed the US job market began 2026 on a stronger footing than expected. Lower interest rates reduce the opportunity cost of holding non-yielding gold.
The United States added 130,000 jobs in January after a downwardly revised 48,000 rise in December, while the unemployment rate fell to 4.3percent.
Economists polled by Reuters had forecast payrolls advancing by 70,000 jobs. “The renewed focus on incoming economic data suggests a degree of normalisation following the recent volatility spike, while the upcoming Lunar New Year holiday in China may further dampen risk appetite and liquidity,” Hansen added.
Investors are waiting for the weekly US jobless claims report later in the day and inflation data on Friday for more cues on the Fed’s monetary policy path.
“I think the CPI (inflation) print on Friday will be key. If we get a softer CPI print coupled with the jobs report data, that could keep gold from advancing much further and could see gold make a foray back below the USD5000/oz mark,” said Zain Vawda, analyst at MarketPulse by OANDA.
Meanwhile, spot platinum shed 1.3percent to USD2,104.90 per ounce, while palladium was up 0.7percent at USD1,711.12.
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