Gold Prices Slip as US Dollar Strengthens Ahead of Key Payrolls Data
Gold prices are set to decline for a second straight week as investors await key US payrolls data. The precious metal fell 0.6% to $4,154.78 per ounce by 0205 GMT and was down more than 3% for the week so far.
The US dollar's strength and elevated Treasury yields are also putting pressure on gold prices. Market participants are watching US interest rate expectations and geopolitical developments in the Middle East, said Kyle Rodda, senior financial market analyst at Capital.com.
Rodda noted that US nonfarm payroll data will be critical for rate expectations, with a hot report potentially increasing the chances of rate hikes from the Federal Reserve. This would likely weigh further on gold prices as higher borrowing costs diminish its attractiveness.
The Fed policymakers' recent stance of taking in more data before deciding on another rate hike has also added to market uncertainty.