#GoldSilverRally
Gold and silver prices fell in Asian trading on Thursday after better-than-expected US employment data dampened expectations for deeper interest rate cuts by the Federal Reserve, although losses were limited by continued demand for safe-haven assets.
Precious metals prices also preserved most of this week's gains, as persistent dollar weakness and tensions between Iran and the US supported interest in safe-haven assets.
Spot gold fell 0.5% to $5,060.47 per ounce, while April gold futures fell 0.3% to $5,081.30 per ounce by 1:32 a.m.
Spot silver fell 1.7% to $82.8810 per ounce, while spot platinum fell 1.1% to $2,115.98 per ounce.
The decline in gold prices came after U.S. nonfarm payrolls data released Wednesday came in better than expected for January.
These data showed unexpected strength in the labor market and dampened bets that a cooling in employment will spur further interest rate cuts by the Federal Reserve.
Markets are currently pricing the Fed's chance of leaving rates unchanged in March at 94.1% and a similar trend in April at 78%, according to CME Fedwatch.
These data also triggered an overnight rebound in the dollar, putting pressure on metals markets. However, the US currency stabilized in Asian trading and is still suffering some losses this week, partly due to pressure from a resurgent Japanese yen.
More signals on the health of the US economy are expected this week, with consumer price index (CPI) inflation data for January due on Friday. Inflation and labor market strength are the two most important factors for the Fed when making rate decisions.
First-year jobless claims data will also be released later on Thursday.
Demand for precious metals as safe-haven assets remained strong amid ongoing tensions between the US and Iran. While both sides noted some progress in the nuclear talks held over the weekend, Washington is reportedly preparing to deploy a second aircraft carrier to the Middle East.$XAU
