Gold and silver fell on Thursday as the dollar strengthened after a better-than-expected January jobs report dented hopes of short-term interest rate cuts, while investors awaited Friday’s inflation data for further monetary policy cues.
basics
*Spot gold fell 0.4% to $5,058.64 an ounce by 0134 GMT, after gaining more than 1% in the previous session.
* U.S. gold futures for April delivery fell 0.3% to $5,080.0 an ounce.
*Spot silver fell 1.4% to $82.87 an ounce after rising 4% on Wednesday.
* The U.S. dollar index built on Wednesday’s gains after a surprisingly strong jobs report that suggested the underlying health of the U.S. economy. A strong dollar makes dollar-priced metals more expensive for holders of other currencies.
* US job growth unexpectedly accelerated in January, with the unemployment rate falling to 4.3%. This is a sign of stabilization in the labor market and could give the Federal Reserve room to hold interest rates for a while while policymakers monitor inflation.
* However, the largest pay increase in 13 months likely overstates the health of the labor market, as the revised version shows the economy will add just 181,000 jobs in 2025, instead of the 584,000 jobs previously estimated.
* The Federal Reserve will keep interest rates unchanged for the remainder of Chairman Jerome Powell’s term, which ends in May, but is expected to cut them soon after in June, according to a Reuters poll, with economists warning that policy under his likely successor, Kevin Warsh, could become too accommodative.
*Investors are now awaiting Thursday’s weekly jobless claims report and Friday’s inflation data for further clues about the Fed’s monetary policy direction.
*After a meeting with Israeli Prime Minister Benjamin Netanyahu on Wednesday, President Donald Trump said he had not reached a “final” agreement on how to proceed with Iran, but insisted negotiations with Iran would continue to see if a deal could be reached.
* Spot platinum fell 1% to $2,110.63 an ounce and palladium rose 0.4% to $1,707.17.
Data/Events (GMT) 07:00 UK GDP Estimate 3M/3M December 07:00 UK GDP Estimate MM, YY December 07:00 UK Services MM, YY December 07:00 UK Manufacturing Output MM December 07:00 UK GDP Provisional QQ, YY Q4 1330 U.S. first-time unemployed February 7, w/e 1500 U.S. existing home sales January (Reporting by Ishaan Arora; Editing by Subhranshu Sahu)
