By Ishaan Arora
Bengaluru – Gold prices experienced a slight decline on Thursday, influenced by a strengthening US dollar as investors anticipate a crucial jobs report later this week. This report is expected to offer further insights into potential shifts in US monetary policy,alongside ongoing assessments of US actions regarding Venezuela.
Spot gold decreased by 0.3% to $4,440.67/oz as of 3.44am GMT, retreating from a recent high reached in the previous session. US gold futures for Febuary delivery also saw a 0.3% drop, settling at $4,449.60.
“Traders are weighing heightened geopolitical tensions, including US intervention in venezuela and the prospect of a Greenland flashpoint under Trump’s so‑called ‘Donroe Doctrine’ against macroeconomic signals from the US,” explained Bernard Sin, regional director for greater China at MKS PAMP.
Expectations of further Federal Reserve interest rate cuts have been bolstered by weaker jobs data,typically supporting non-interest-bearing bullion. However, market sentiment remains cautious, with investors aware of potential volatility and the possibility of profit-taking at elevated price levels, Sin noted.
Expert Context
Market analysts suggest the current price action reflects a delicate balance between geopolitical risks and economic indicators. The strength of the US dollar often inversely correlates with gold prices, as it becomes more expensive for international buyers to purchase the precious metal.
Currently, bullion is approximately $110 below its record high of $4,549.71, achieved on December 29.Gains are being tempered by the robust dollar and some investors taking profits.
Wednesday’s data revealed that US job openings fell to their lowest level in 14 months in November, while hiring activity remained sluggish, indicating a cooling labor market.
All eyes are now on the US nonfarm payrolls data, scheduled for release on Friday, for further clues regarding the Federal Reserve’s monetary policy direction.
Geopolitically, the US government seized two oil tankers linked to Venezuela in the Atlantic Ocean on Wednesday, including one flying under the Russian flag. this action is part of President Donald Trump’s assertive strategy to control oil flows within the Americas.
Spot silver decreased by 0.4% to $77.85/oz, following a record high of $83.62 on December 29.
HSBC projects silver to trade between $58 and $88 an ounce in 2026, driven by limited physical supply, strong investment demand, and high gold prices. However, they also caution about a potential market correction later in the year.
Spot platinum declined by 0.8% to $2,288.23/oz, after reaching a record peak of $2,478.50 the previous Monday.
Palladium shed 0.5% to $1,756.42/oz.
