Despite weaker-than-anticipated U.S. jobs data, gold plummeted to its lowest point in a month on Friday, continuing a correction phase following last month’s impressive surge.
Investors opted to cash in profits amidst easing geopolitical tensions. As of 1521 GMT, spot gold witnessed a 0.4% decline, settling at $2,294.30 per ounce, marking its second consecutive weekly downturn with a total decrease of 1.8% thus far. Concurrently, U.S. gold futures also experienced a dip, shedding 0.3% and reaching $2,302.40.
Prices swiftly relinquished their gains, retracting from their peak of $2,320.78 shortly following the release of data indicating that U.S. nonfarm payrolls had grown by 175,000 jobs last month, falling short of economists’ anticipated forecast of 243,000.
Also read: Gold and silver rate today on 03-05-2024: Check latest rates in your city
“Gold prices remained range-bound, hovering around the $2300 mark ahead of the release of the important Nonfarm Payroll and Unemployment data later in the evening. Market projections suggest lower payrolls, which could keep gold buyers interested, as weaker-than-expected Nonfarm Payroll data typically supports gold prices. Conversely, higher-than-expected data could add selling pressure,” said Jateen Trivedi, VP Research Analyst – Commodity and Currency, LKP Securities.
While the employment figures reaffirmed anticipations of the Federal Reserve commencing interest rate reductions this year, potentially bolstering zero-yield bullion, investors, in response, opted for riskier assets instead.
Safe-haven precious metals have declined by 5.7%, approximately $140, from their peak of $2,431.29 in April. This decrease was influenced by tensions in the Middle East and significant purchases by central banks.
Also read: Gold rates today: Yellow metal pulls back over high interest rates by US Fed, silver trades flat
“Gold prices are stuck in a range ahead of the U.S. NFP data due later in the day. Although the U.S. labor market remains strong, the data is likely to support the dollar and bond yields, and may weigh on risk assets including gold,” said Pranav Mer, VP – Research (Commodity & Currency) BlinkX and JM Financial.
Driven by gold’s movement, silver declined by 1.3% to $26.35, signaling a potential weekly decrease. In contrast, platinum saw a modest gain of 0.1% to $950.76, marking an approximately 5% increase for the week thus far. Additionally, palladium experienced a rise of 0.9% to $943.50.
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Published: 03 May 2024, 10:55 PM IST