Gold prices fell on Friday, affected by changes in commodity indices and a stronger dollar, as investors awaited the upcoming U.S. non-farm payrolls data. The dollar gained strength as market participants readied themselves for employment data and a decision from the Supreme Court. Market participants are carefully examining the data for signs related to the Federal Reserve’s monetary policy approach. Spot gold fell by 0.4% to $4,458.10 per ounce as of 0126. Bullion reached an unprecedented peak of $4,549.71 on December 26. U.S. gold futures for February delivery increased by 0.2% to $4,467.60.

The U.S. dollar gained strength at the beginning of Asian trading hours, as market participants looked forward to the upcoming U.S. jobs report and braced for a decision from the U.S. Supreme Court concerning President Donald Trump’s use of emergency tariff powers. The annual Commodity Index rebalancing, a systematic adjustment of commodity weightings to ensure alignment with prevailing market conditions, begins this week and is expected to maintain pressure on the precious metals market. New U.S. unemployment claims saw a slight rise last week, happening alongside a fairly low rate of layoffs. At the same time, labor demand remained weak, with companies aiming to get the most from their existing employees.

Investors are looking forward to at least two rate cuts from the Federal Reserve this year, and they are focusing on the non-farm payrolls data for clues about the direction of monetary policy. The U.S. Senate took a significant step on Thursday by advancing a resolution designed to limit President Trump from launching any military actions against Venezuela without prior congressional approval, despite the president’s claim that U.S. “oversight” of Venezuela could last for several years. Assets that do not generate income often show positive performance in situations marked by low interest rates and times of geopolitical or economic instability.

HSBC anticipates that gold prices could hit $5,000 per ounce in the first half of 2026, influenced by escalating geopolitical risks and growing debt levels. Meanwhile, Glencore and Rio Tinto revealed that they are in early talks regarding a potential buyout that may result in the creation of the largest mining company globally, with a combined market value of nearly $207 billion. Spot silver saw a decrease of 1.5%, closing at $75.71 per ounce after hitting a high of $83.62 on December 29. Spot platinum fell by 2.9% to $2,202.50 per ounce, after reaching a record high of $2,478.50 the previous Monday. Palladium decreased by 2.1%, closing at $1,749.25 per ounce.