NEW YORK: Gold prices edged lower on Thursday as the U.S. dollar firmed after stronger than expected U.S. jobs data, cooling expectations for near term interest rate cuts. Spot gold was down 0.5% at $5,055.24 an ounce by 0642 GMT, after closing Wednesday up more than 1%. U.S. gold futures for April delivery fell 0.4% to $5,077.30. Investors turned to fresh U.S. economic readings due later this week for additional signals on interest rates.
The dollar gained after data showed U.S. nonfarm payrolls rose by 130,000 in January, exceeding expectations for a 70,000 increase, while the unemployment rate slipped to 4.3% from 4.4% in December. The report included annual revisions showing the economy added 181,000 jobs in 2025 instead of the previously estimated 584,000. The employment report, initially scheduled for release last Friday, was delayed by a three day federal government shutdown.
Gold, which does not pay interest, often moves inversely with the dollar and with shifts in U.S. Treasury yields. A firmer dollar can make gold more expensive for buyers using other currencies, while higher yields can raise the opportunity cost of holding bullion. The Federal Reserve last month held its benchmark overnight interest rate in the 3.50% to 3.75% range, and investors have been recalibrating expectations about the timing of future policy adjustments following the latest labor market data.
Trading this week has been choppy as investors weighed the jobs report alongside other indicators. Spot gold rose about 2% on Monday, then fell more than 1% on Tuesday before rebounding on Wednesday. During Wednesday’s session, spot gold reached as high as $5,118.47 before easing, then finished the day with a gain of more than 1%. The swings kept attention on U.S. macro data that can influence the dollar and yields, both key drivers for gold pricing.
Dollar strength weighs on bullion
Other precious metals also moved lower in early Thursday trade. Spot silver fell 0.6% to $83.49 an ounce, after climbing about 4% on Wednesday. Platinum slid 1.1% to $2,109.45 an ounce, while palladium rose 0.3% to $1,705.25. The metal complex has tracked shifts in rate expectations and currency moves in recent sessions, with silver showing the largest day to day percentage moves among the major precious metals.
Beyond the immediate reaction to U.S. labor data, investors also digested fresh fiscal projections in the United States. The Congressional Budget Office forecast on Wednesday that the U.S. budget deficit will rise slightly in fiscal 2026 to $1.853 trillion. Markets also monitored broader risk indicators across currencies and rates as the dollar strengthened following the jobs report, reinforcing the link between U.S. economic data, the currency backdrop, and day to day moves in precious metals.
Key U.S. data due later this week
Investors are now focused on two near term U.S. releases that can shape expectations for interest rates and the dollar. Weekly jobless claims are due Thursday. The U.S. Consumer Price Index for January is scheduled for release on Friday, February 13, according to the U.S. Bureau of Labor Statistics calendar. These data points are closely watched because they can influence how markets price the path of U.S. interest rates, which in turn affects the dollar and demand conditions for gold.
Gold has remained above the $5,000 level through much of February, with prices oscillating as investors responded to changing views on U.S. growth, inflation, and monetary policy. Thursday’s dip followed a sharp midweek rebound that lifted bullion from Tuesday’s losses, underscoring how quickly gold can react to shifts in the dollar and yields. With inflation and labor market readings still driving trading, spot gold and futures prices have continued to move in tight correlation with U.S. macro data releases. – By Content Syndication Services.