Gold drops sharply as investors focus on the dollar and U.S. jobs data.
$BTC $BNB
Gold prices witnessed a noticeable decline during trading on Thursday, as the rise of the U.S. dollar pressured the yellow metal, while investors closely await developments in U.S. trade policy and the anticipated non-farm payroll data in the United States. This decline comes amid market anticipation for new signals regarding the path of the Federal Reserve's monetary policy.
Performance of gold and precious metals:
The price of gold in spot transactions fell by 1% to $3,250.45 per ounce, while U.S. gold futures contracts dropped by 1.7% to record $3,216.70 per ounce.
In other precious metals, silver recorded a slight increase of 0.1% to reach $32.63 per ounce, while platinum declined by 0.1% to $965.32, and palladium rose by 0.1% to $938.85 per ounce.
Factors influencing prices:
The dollar index, which measures the performance of the U.S. currency against a basket of major currencies, rose by 0.2%, reducing gold's appeal for holders of other currencies, as it becomes more expensive for them.
Investors are awaiting any clarity regarding the trade policy of President Trump's administration with its trade partners. The U.S. Trade Representative has stated that preliminary tariff agreements with some partners may be reached soon, but talks with China remain informal, creating a state of uncertainty that affects investor sentiment.
The market is also closely awaiting the release of the U.S. non-farm payroll report tomorrow, Friday. This data is an important indicator of labor market 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 U.S. economy in the first quarter, partly attributed to companies accelerating the import of goods ahead of expected tariffs. This data increases the anticipation regarding the future of economic growth and the impact of trade policies.#SaylorBTCPurchase
