Gold prices decline in early trade

6 Apr 2023 , 07:55 AM

As the dollar strengthened on Thursday ahead of the much-anticipated U.S. non-farm payrolls report, gold prices declined as investors sought clarification on whether the Federal Reserve could pause its  monetary tightening cycle.

Spot gold was down 0.3% at $2,014.79 per ounce after reaching a record high on Wednesday. At $2,034.70, U.S. gold futures remained stable.

The dollar index increased by 0.1%, increasing the price of bullion for international customers.

As demand decreased in March, the U.S. services industry slowed down more than was anticipated, and a gauge of prices paid by services organizations dropped to its lowest level in almost three years.

The ADP National Employment report released on Wednesday revealed that U.S. private firms employed far fewer people in March than anticipated, indicating a softening in the labour market.

Investors are currently anticipating Friday’s non-farm payrolls report for March, with economists surveyed by Reuters forecasting 240,000 additional jobs.

The CME FedWatch tool estimates that there is a 54.2% chance that the Fed will leave interest rates unchanged in May.

While predicting that interest rates will need to increase, Cleveland Federal Reserve Bank President Loretta Mester said on Wednesday that it is still too early to say if the Fed will need to hike rates at its May policy meeting.

Spot silver prices fell 1% to $24.73 per ounce, while platinum prices increased 0.3% to $999.68 and palladium prices decreased 0.1% to $1,428.25.

For feedback and suggestions, write to us at [e-mail]