Gold prices saw a significant decline during trading on Thursday, as the rise of the US dollar put pressure on the yellow metal, while investors are closely monitoring developments in US trade policy and the upcoming non-farm payroll data in the United States. This decline comes as markets await new signals regarding the Federal Reserve's monetary policy direction.
Gold and Precious Metals Performance:
The price of gold in spot transactions fell by 1% to reach $3250.45 an ounce, while US gold futures dropped by 1.7% to record $3216.70 an ounce.
Regarding other precious metals, silver recorded a slight increase of 0.1% to reach $32.63 an ounce, while platinum decreased by 0.1% to $965.32, and palladium rose by 0.1% to $938.85 an ounce.
Factors Affecting Prices:
The dollar index, which measures the performance of the US dollar against a basket of major currencies, rose by 0.2%, reducing the appeal of gold for holders of other currencies, as it becomes more expensive for them.
Investors are looking for any clarity on the trade policy of President Trump's administration with its trading partners. The US trade representative has stated that preliminary tariff agreements with some partners could be reached soon, but talks with China remain informal, creating a sense of uncertainty that affects investor sentiment.
The market is also closely awaiting the release of the non-farm payroll report in the United States tomorrow, Friday. This data is considered a significant indicator of the labor market's strength and can influence the Federal Reserve's monetary policy decisions. Expectations indicate a slowdown in job growth with a stable unemployment rate.
Recent data has shown a contraction in the US economy in the first quarter, partly attributed to companies accelerating the import of goods before the expected tariffs take effect. This data increases the sense of anticipation regarding the future of economic growth and the impact of trade policies.
