Gold Falls as Interest Rate Cut Hopes Fade

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.