NEW YORK: Gold prices fell about 1% on Thursday as investors booked profits following a three-day rally, with markets eyeing US jobs data for clues on the Federal Reserve’s rate path amid rising global trade tensions.
Spot gold, which dipped 0.5% to $2,904.51 an ounce as of 1211 GMT, has gained over 10% year-to-date. It hit a record high of $2,956.15 on February 24.
US gold futures also dropped 0.5% to $2,912.10. “Gold seems to be experiencing profit-taking as investors closely watch tariff developments with prices trading toward $2,900 ahead of the non-farm payrolls report,” Lukman Otunuga, senior research analyst at FXTM, said.
Market focus is pinned on an escalating global trade war after the US imposed 25% tariffs on imports from Mexico and Canada on Tuesday along with fresh duties on Chinese goods.
Asian stocks rose as investors held out hope that trade tensions could ease after US President Donald Trump exempted some automakers from tariffs for a month. Investors turn to gold as a safe haven asset when geopolitical and economic uncertainties loom.
“Unless there is a fresh direction catalyst, the current bearish price action may drag gold lower. Should prices break below the $2,900, this may signal further downside toward $2,880,” Otunuga said.
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