Gold fell as a stronger dollar, boosted by solid US jobs data, outweighed safe-haven demand.
- +Gold Drops As Dollar Gains On Strong Jobs Data
US President Donald Trump is set to address markets as gold prices eased due to rising geopolitical tensions and strong economic data
US President Donald Trump is set to address markets as gold prices eased due to rising geopolitical tensions and strong economic data
Gold prices fell on Monday as a stronger US dollar and robust jobs data reduced expectations for interest rate cuts, even as the conflict involving iran heightened uncertainty.
Spot gold slipped 0.4% to $4,658.90 per ounce, while U.S. gold futures edged up 0.1% to $4,684.30 in thin holiday trading across parts of Asia and Europe.
Analysts said markets are focused on potential developments from Trump’s expected remarks on the escalating US Iran situation, which could introduce fresh volatility.
Trump has warned of severe consequences if Tehran fails to reopen the Strait of Hormuz a key global oil transit route, though intelligence reports suggest Iran may delay any such move
Meanwhile, reports indicate that the United States, Iran and mediators are discussing a possible 45days ceasefire, raising cautious hopes for de-escalation.
Rising oil prices driven by the conflict have added to inflation concerns, even as gold traditionally a safe-haven asset faces pressure from higher interest rates.
Recent data showing strong US job growth and a drop in unemployment to 4.3% boosted Treasury yields and the dollar, further weighing on gold demand.
Expectations for rate cuts by the Federal Reserve have also diminished, with traders now pricing out earlier forecasts of easing this year.
Other precious metals saw mixed movement, with silver and platinum declining, while palladium posted gains.
