Gold Slips as Strong U.S. Jobs Data Clouds Rate-Cut Outlook
Gold prices edged lower after stronger-than-expected U.S. jobs data reduced expectations of near-term interest rate cuts by the Federal Reserve. Spot gold fell 0.3% to $5,062.83 per ounce, while U.S. gold futures for April delivery slipped 0.3% to $5,084.30. Silver also declined 0.6% to $83.52 per ounce, retreating after a sharp gain in the previous session.
Data showed the U.S. economy added 130,000 jobs in January, exceeding forecasts of 70,000, while the unemployment rate eased to 4.3%. The stronger labor market performance lifted the dollar and reinforced expectations that the Fed may keep interest rates higher for longer. Since gold does not yield interest, elevated rates increase the opportunity cost of holding the metal, weighing on prices.
Investors are now awaiting weekly U.S. jobless claims data and Friday’s inflation report for further clues on the Fed’s policy path. Analysts said a softer inflation reading could limit gold’s downside, but persistent strength in economic data may push prices below the $5,000 per ounce mark. Meanwhile, platinum dropped 1.3% and palladium rose 0.7% in broader precious metals trade.
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