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Gold prices eased slightly on Thursday as the dollar edged up and markets hunkered down for cues from the US jobs report.
Spot gold fell 0.1% to $2,018.99 per ounce by 1041 GMT but is still up 2.6% so far this week on economic slowdown concerns. US gold futures remained unchanged at $2,035.70.
The surprise oil output cuts by Opec+ and weak US economic data over the week stoked fears of a potential recession in the United States, sending gold up above $2,000.
With the market being over-stretched, some profit-booking, and an uptick in the dollar, there’s a cool-off in the prices, said Vandana Bharti, assistant vice-president of commodity research at SMC Global Securities.
While there could be further short-term corrections, gold could bounce again on continuous weaker indicators amid steady central bank buying, Bharti added.
The dollar index edged 0.1% higher, making bullion expensive for overseas buyers.
Investors now await Friday’s US non-farm payrolls report for March. However, market reactions can be gauged only by Monday as most financial markets will remain shut for the Good Friday holiday.
Gold is traditionally considered a hedge against inflation and economic uncertainties, but higher interest rates dim the non-yielding bullion’s appeal.
While Cleveland Federal Reserve Bank president Loretta Mester said interest rates would need to still be over 5%, markets see a 56% chance of the Fed standing pat on rates in the May policy meeting, according to CME’s FedWatch tool.
Meanwhile, physical gold demand in key Asian hubs hit a pause this week with high domestic prices forcing dealers in some markets to lure customers with discounts.
Spot silver fell 0.1% to $24.95 per ounce, platinum gained 0.7% to $1,004.42, while palladium edged 0.4% higher to $1,435.56.
Reuters
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