New Delhi, Feb 12 : Gold and silver prices declined on Thursday as a firmer U.S. dollar followed better than expected January employment figures, reducing expectations of near term interest rate cuts. Market participants are now focused on upcoming inflation data for clearer signals on the Federal Reserve’s policy trajectory.
Spot gold slipped 0.4% to $5,058.64 per ounce by 0134 GMT after gaining more than 1% in the previous session, while April gold futures eased 0.3% to $5,080. Silver dropped 1.4% to $82.87 per ounce, retreating after a sharp rise a day earlier.
The dollar index extended its rally after the strong jobs report pointed to underlying resilience in the U.S. economy. A stronger greenback typically pressures bullion by making dollar-priced metals costlier for overseas buyers.
Data showed job growth accelerated unexpectedly in January and the unemployment rate fell to 4.3%, indicating a stable labour market that could allow the Federal Reserve to hold interest rates steady while it continues to assess inflation risks. However, revisions suggested last year’s hiring was lower than previously estimated, tempering the overall outlook.
A Reuters poll indicated the Fed may keep rates unchanged through Chair Jerome Powell’s term ending in May, with economists anticipating the possibility of a rate cut soon after. Investors will closely monitor weekly jobless claims and Friday’s inflation reading for further guidance.
Elsewhere, geopolitical developments remained in focus after U.S. President Donald Trump said discussions with Israeli Prime Minister Benjamin Netanyahu produced no definitive plan on Iran, though negotiations are set to continue.
Among other precious metals, platinum fell 1% to $2,110.63 per ounce, while palladium edged up 0.4% to $1,707.17.