Gold Prices Decline as Dollar Rises After Jobs Data

Gold prices declined on Thursday as the US dollar strengthened following stronger-than-expected January jobs data.

The upbeat labor report reduced expectations of an imminent interest rate cut, weighing on the precious metal.

As of 03:18 GMT, spot gold fell 0.3% to $5,065.98 per ounce, after closing the previous session with gains exceeding 1%.

US gold futures for April delivery slipped 0.2% to $5,087.30 per ounce.

Dollar Strength Pressures Gold Prices

The rise in the dollar index after the labor market report put pressure on gold prices.

A stronger dollar makes dollar-denominated gold more expensive for holders of other currencies, dampening global demand.

US employment growth accelerated unexpectedly last month, while the unemployment rate fell to 4.3%.

However, revisions showed that the economy added 181,000 jobs in 2025, significantly lower than the previously estimated 584,000.

Monetary Policy Outlook

Investors are closely watching the Federal Reserve’s policy direction.

A recent survey suggested the Fed may keep interest rates unchanged until the end of Chair Jerome Powell’s term in May, with a potential cut in June if economic conditions warrant.

Market participants are now awaiting weekly jobless claims and inflation data for further clues on the interest rate trajectory, which will directly impact gold prices in the near term.

Budget Deficit and Other Metals

The Congressional Budget Office projected the US budget deficit to rise to $1.853 trillion in fiscal year 2026, highlighting mounting fiscal pressures despite ongoing economic growth.

Among other precious metals, silver slipped 0.3% to $83.81 per ounce, platinum declined 0.3% to $2,126.52, while palladium gained 1.4% to $1,722.67 per ounce.

Gold prices remain sensitive to movements in the dollar and incoming US economic data, as markets seek clearer signals on future monetary policy decisions.