Gold falls as strong US jobs data and rising oil prices dampen rate cut hopes

A stronger dollar and fading expectations of Federal Reserve easing weigh on gold, while energy market pressures and resilient US employment data reshape investor sentiment.

Annahar

Gold.

Gold prices declined on Monday as the US dollar strengthened, while expectations for a Federal Reserve rate cut weakened. This came as oil prices rose due to the prolonged war with Iran and after US employment data came in stronger than expected.

In spot trading, gold fell by 0.9 percent to 4631.69 dollars per ounce at 03:06 GMT. US gold futures for April delivery also dropped by 0.5 percent to 4657.50 dollars, in thin trading as many markets in Asia and Europe were closed for a holiday.

Tim Waterer, Chief Market Analyst at KCM Trade, said the strong nonfarm payroll figures have increased concerns among central banks that tend to favor tighter monetary policy. At the same time, ongoing fears of inflation driven by rising oil prices are reducing gold’s attractiveness as a safe haven.

Data released on Friday showed that nonfarm payrolls in the United States increased by 178,000 jobs in March, marking the largest monthly gain since December 2024, while the unemployment rate fell to 4.3 percent.

The yield on the US 10 year Treasury and the dollar index both rose, putting pressure on gold, which is priced in dollars. Brent crude also increased as global energy supplies continued to be affected by the US Israeli war on Iran.

Traders have now almost completely ruled out any chance of a Federal Reserve rate cut this year. Before the war, there had been expectations of two rate cuts during the year.

In spot trading, silver fell by 1.4 percent to 71.98 dollars per ounce, platinum dropped by 0.9 percent to 1970.38 dollars, while palladium remained steady at 1503.52 dollars.

Gold falls as strong US jobs data and rising oil prices dampen rate cut hopes

Gold falls as strong US jobs data and rising oil prices dampen rate cut hopes

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