Gold prices have seen a modest decline attributed to a strengthening dollar, as market participants closely monitor forthcoming updates on U.S. trade policies and the impending U.S. non-farm payrolls report. The market is poised for the jobs report, seeking clarity on the Federal Reserve’s monetary policy trajectory, in the context of persistent trade negotiations and recent economic downturns. Gold exhibited a subdued performance on Thursday, influenced by the strength of the dollar. Investors remained cautious as they sought greater clarity regarding trade policy between the U.S. and its trading partners, while also anticipating the upcoming U.S. non-farm payrolls report scheduled for release this week.
Spot gold decreased by 0.7%, reaching $3,265.45 per ounce, as of 0030 GMT. U.S. gold futures experienced a decline of 1.4%, settling at $3,273.70. The dollar index, which assesses the U.S. currency relative to a selection of others, increased by 0.2%, thereby diminishing gold’s appeal for holders of alternative currencies.
The Trump administration anticipates finalizing initial tariff agreements with certain U.S. trading partners in the coming weeks. However, discussions with India are not nearing completion, and there are currently no formal negotiations taking place with China, according to U.S. Trade Representative Jamieson Greer on Wednesday. In the first quarter, the U.S. economy experienced a contraction for the first time in three years, driven by businesses hastily importing goods in anticipation of forthcoming tariffs from the Trump administration. China’s stock and bond markets, as well as the foreign exchange and commodity futures markets, will observe a closure from May 1 to May 5 in observance of the Chinese Labour Day holiday.
The market is currently anticipating the non-farm payrolls report scheduled for Friday, which will provide further insights into the trajectory of the Fed’s monetary policy. The report is anticipated to indicate a deceleration in hiring, while the unemployment rate remains unchanged at 4.2%.
Non-yielding gold, viewed as a safeguard against global uncertainty and inflation, typically flourishes in a low-interest-rate environment, reached an unprecedented peak of $3,500.05 per ounce on April 22. In a recent quarterly poll conducted by Reuters, analysts have projected an average annual gold price exceeding $3,000 for the first time. This forecast is driven by escalating global trade tensions and a notable shift away from reliance on the U.S. dollar, which is fueling demand.
Spot silver increased by 0.1% to $32.63 per ounce, while platinum decreased by 0.1% to $965.32, and palladium experienced a slight uptick of 0.1% to $938.85.