Gold prices edged lower Thursday after stronger-than-expected U.S. jobs data reduced expectations of near-term Federal Reserve rate cuts.
Spot gold fell 0.3% to $5,064.29 per ounce, while April futures slipped 0.2% to $5,086.50.
Spot silver declined 0.7% to $83.47, retreating after a sharp 4% rally in the previous session.
Analysts said robust payroll figures lifted the dollar and cooled speculation of imminent policy easing, pressuring non-yielding assets like gold.
U.S. employers added 130,000 jobs in January, surpassing forecasts of 70,000, while unemployment dipped to 4.3%.
The data suggests the Fed may keep rates higher for longer, increasing the opportunity cost of holding bullion.
Market focus now shifts to weekly jobless claims and Friday’s CPI release, seen as crucial for the Fed’s policy outlook.
A softer inflation print could cap gold’s upside, with analysts warning prices may test the $5,000 level again.
