Gold pared gains after robust US jobs data reinforced bets that the Federal Reserve will keep interest rates higher for longer, a headwind for the precious metal.
Bullion trimmed Tuesday’s earlier advances of as much as 1.3% after the Bureau of Labor Statistics released data showing that US job openings jumped in April to the highest level in almost two years while layoffs fell. That added to signs of labor-market resilience.
Traders also weighed fresh signals from the US and Iran for clues on the prospects of a ceasefire deal to end the Middle East war that has roiled financial markets worldwide.
The outlook for gold “remains contingent on developments in the Middle East,” Rhona O’Connell, head of market analysis for EMEA and Asia at StoneX Financial Ltd., said in a note. “Although some progress has been made, the key issues remain unresolved, meaning that prices are likely to remain range-bound, potentially with a downward bias on the back of interest-rate expectations.”
Gold fell sharply after the conflict began in late February and remains about 15% below its pre-war level, though it has traded in a narrow range for the last few weeks. Any resumption of energy and trade traffic through Hormuz would ease concerns around rising consumer prices, making it more likely that central banks will loosen monetary policy. Lower borrowing costs are a tailwind for gold, which doesn’t pay interest.
Spot gold rose 0.4% to $4,501.72 an ounce at 11:58 a.m. in New York. Silver gained 1.2% to $75.74 an ounce, while platinum and palladium also advanced. The Bloomberg Dollar Spot Index, a gauge of the US currency, was little changed.
With assistance from Jack Ryan, Preeti Soni and Robin Paxton.
This article was generated from an automated news agency feed without modifications to text.
