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Economy
Gold prices declined on Monday, pressured by a rising dollar as expectations for a Federal Reserve interest rate cut faded. Stronger-than-expected US jobs data and rising oil prices from the prolonged war on Iran diminished gold’s safe-haven appeal. Spot gold fell 0.9% to $4,631.69 per ounce, while US gold futures dropped 0.5% to $4,657.50. Non-farm payrolls rose by 178,000 jobs in March, the largest increase since December 2024, and the unemployment rate fell to 4.3%. Treasury yields and the dollar index rose, weighing on gold. Traders now see no rate cuts this year. Silver and platinum also fell, while palladium held steady.
Gold prices fell on Monday, pressured by a rising dollar as hopes for a Federal Reserve interest rate cut diminished amid rising oil prices stemming from the prolonged war on Iran and stronger-than-expected US jobs data.
Spot gold dropped 0.9% to $4,631.69 per ounce by 03:06 GMT, while US gold futures for April delivery fell 0.5% to $4,657.50 in trading marked by thin liquidity as many markets in Asia and Europe remained closed for a holiday.
Tim Waterer, chief market analyst at KCM Trade, said: "The latest non-farm payrolls figures came in strong, which has heightened concern among hawkishly-leaning central banks, while the ongoing inflation fears driven by rising oil continue to dull gold's usual safe-haven appeal."
Friday's data showed US non-farm payrolls rose by 178,000 jobs in March, the largest increase since December 2024, while the unemployment rate fell to 4.3%.
US 10-year Treasury yields and the dollar index both rose, weighing on dollar-priced gold. Brent crude climbed as global energy supplies continued to be affected by the US-Israeli war on Iran.
Traders have almost entirely ruled out any possibility of a Fed rate cut this year. Before the war began, there had been expectations for two cuts this year.
Spot silver fell 1.4% to $71.98 per ounce, platinum dropped 0.9% to $1,970.38, while palladium held steady at $1,503.52.
