Gold prices extended losses in Asian trading on Thursday, giving back ground after sharp gains at the start of the week as a firmer U.S. dollar weighed on investor appetite for bullion ahead of key U.S. labour market data.
Spot gold slipped 0.5% to $4,436.62 an ounce by 06:40 GMT, while U.S. Gold Futures also eased 0.4% to $4,44286/oz, as traders locked in profits from recent rallies.
The dollar’s strength made bullion more expensive for holders of other currencies. The US Dollar Index was steady after two sessions of gains.
Get premium commodity insights, analyst research with InvestingPro Market participants remained cautious ahead of Friday’s U.S. nonfarm payrolls report, a crucial data point that could shape expectations around Federal Reserve interest rate policy.
Softer jobs figures could bolster bets on rate cuts, supporting gold’s appeal as a hedge against lower yields.
US-Venezuela tensions cap losses Geopolitical tensions provided some counterbalance to losses, with ongoing U.S.-Venezuela developments continuing to feed safe-haven demand for gold.
On Wednesday, U.S. forces seized two oil tankers linked to Venezuelan crude shipments, including one that had been sailing under a Russian flag, in an escalation of Washington’s enforcement of sanctions on Venezuelan oil exports.
U.S. officials said the operations aimed to disrupt sanctioned oil flows that are helping fund the Venezuelan government and elude U.S. restrictions.
The capture of a tanker under a Russian flag has drawn rebukes from Moscow, which labelled the seizure “blatant piracy” and demanded the return of its nationals among the crew, according to reports.
For gold, the heightened U.S.–Venezuela tensions lent some support to safe-haven demand, with traders awaiting definitive signals from Friday’s payrolls data.
Metal markets fall Other precious and industrial metals also traded lower on Thursday.
Silver prices dropped 2.3% to $76.32 per ounce, while platinum declined 4.3% to $2,207.60/oz.
Benchmark Copper Futures on the London Metal Exchange slipped 0.3% to $12,854.20 a ton, while U.S. Copper Futures traded flat at $5.85 a pound.
