- The US nonfarm payrolls expected on Friday
- Gold is up 2.4% so far this week
- Benchmark US Treasury yields near 7-month lows
April 6 (Reuters) – Gold prices eased slightly on Thursday as the dollar rose and markets retreated on hints from the US jobs report.
Spot gold was down 0.1% to $2,017.59 an ounce by 1232 GMT, while US gold futures for June delivery fell a similar range to $2,033.70.
Bullion is up about 2.4% so far this week after surprise OPEC+ oil production cuts and weak US jobs and services data later in the week fueled fears of an economic slowdown and pushed gold prices above $2,000.
“Friday’s upcoming US jobs report could determine whether the precious metal closes above or below $2,000 for the week,” said Lukman Otunuga, senior research analyst at FXTM.
However, market reactions could only be gauged on Monday as most financial markets remain closed for Good Friday.
The yellow metal has traditionally been seen as a hedge against inflation and economic uncertainties, but higher interest rates dull the unyielding precious metal’s appeal.
US Treasury benchmark yields held near seven-month lows. The dollar edged up 0.1%, making gold more expensive for holders of other currencies.
According to CME’s FedWatch tool, markets see a 58% chance of the Federal Reserve sponsoring the May interest rate meeting.
“Beyond that point, prices could venture to the all-time high of around $2,075 – a level not seen since August 2020. If the bulls lose air, prices could revisit the $2,000 and $1,000 levels respectively.
Meanwhile, demand for physical gold in key Asian hubs is taking a pause this week as high domestic prices are forcing some dealers to lure customers with discounts.
Spot silver fell 0.1% to $24.94 an ounce, platinum was up 0.4% to $1,001.06 and palladium fell 0.2% to $1,427.46.
Reporting by Seer Dareen in Bengaluru; Edited by Shweta Agarwal and Sohini Goswami
Our standards: The Thomson Reuters Trust Principles.
Seer Dareen
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