Gold Prices Pull Back as Dollar Strengthens, Markets Await US Jobs Data
Gold prices retreated on Thursday as the US dollar strengthened, while investors remained cautious ahead of key US labor market data.
According to Reuters, spot gold fell 0.3% to US$4,924.89 per ounce by 1:31 p.m. local time. Earlier in the session, prices had surged as much as 3.1%, following a sharp 5.9% rally the previous day.
In contrast, US gold futures for April delivery edged up 0.3%, settling at US$4,950.80 per ounce.
The stronger US dollar emerged as a major drag on gold prices. The dollar index held near a more-than-one-week high, making dollar-denominated gold more expensive for overseas buyers.
“We’re seeing a reversal in the dollar, and that strength is putting pressure on gold,” said David Meger, Director of Metals Trading at High Ridge Futures, adding that the market remains in a consolidation phase after hitting record highs.
Gold had previously suffered a steep more than 13% decline over two trading sessions on Friday and Monday — the sharpest two-day drop in decades — after reaching an all-time high of US$5,594.82 per ounce on January 29.
On the geopolitical front, investors are closely watching planned talks between Iran and the United States, scheduled for Friday. Markets are also monitoring broader diplomatic developments, including US President Donald Trump’s discussions with Chinese President Xi Jinping, ahead of a planned visit to China in April, following Xi’s virtual meeting with Russian President Vladimir Putin.
Attention is also focused on US economic data. The latest ADP report showed private-sector job growth of just 22,000 in January, well below market expectations of 48,000.
Meanwhile, the US Bureau of Labor Statistics (BLS) confirmed that the official January employment report will be released on February 11, after delays caused by the recent US government shutdown, which ended earlier this week.
Investors currently expect at least two US interest rate cuts in 2026. In a lower interest rate environment, non-yielding assets such as gold tend to become more attractive.
Goldman Sachs remains bullish on gold prices, maintaining its forecast of US$5,400 per ounce by December 2026, citing private-sector demand as a potential upside surprise.
Other precious metals traded mostly higher. Spot silver rose 1.3% to US$86.08 per ounce, platinum gained 0.6% to US$2,221.76, and palladium climbed 1.3% to US$1,756.18 per ounce.