Gold Prices Fall On Profit-Taking, US Data In Focus
Gold prices fell about 1% on Thursday as investors booked profits after a three-day rally, with markets eyeing US jobs data for clues on the Federal Reserve’s interest rate path amid rising global trade tensions.
Spot gold, which was down 0.5% at $2,904.51 an ounce by 1211 GMT, has gained more than 10% this year. It hit a record high of $2,956.15 on Feb. 24.
US gold futures also fell 0.5% to $2,912.10.
“Gold appears to be seeing some profit-taking as investors watch tariff developments with prices trading near $2,900 ahead of the nonfarm payrolls report,” said Lukman Otunuga, senior research analyst at FXTM.
Market focus is on the escalating global trade war after the US imposed 25% tariffs on imports from Mexico and Canada on Tuesday along with new duties on Chinese goods.
Asian shares rose as investors hoped trade tensions could ease after US President Donald Trump exempted some automakers from tariffs for a month.
Investors are turning to gold as a safe haven asset as geopolitical and economic uncertainty looms.
"Unless there is a fresh directional catalyst, the current bearish price action could drag gold lower. If prices fall below $2,900, it could signal a further decline towards $2,880," Otunuga said.
The spotlight is on Friday's nonfarm payrolls report, which is expected to show a gain of 160,000 jobs in February, economists polled by Reuters said.
Meanwhile, platinum prices were flat at $964.68 an ounce.
"We expect platinum to be undersupplied by 500,000 ounces, or 6.4% of demand, by 2025, putting the metal in deficit for the third consecutive year," UBS said in a note.
"Our market deficit should further reduce above-ground inventories below 3 million ounces and help prices move to $1,100/oz this year." (Newsmaker23)
Source: CNBC
