Gold prices experienced a slight dip on Thursday, as a result of a stronger dollar and anticipation surrounding a crucial jobs report set to be released later in the week. Spot gold saw a decrease of 0.3% to $4,440.67 per ounce at 0344 GMT, falling from a high reached in the previous session. Similarly, U.S. gold futures for February delivery also declined by 0.3% to $4,449.60.
Bernard Sin, the regional director for Greater China at MKS PAMP, highlighted that traders are currently evaluating geopolitical tensions, particularly the U.S. involvement in Venezuela and potential conflicts related to the "Donroe Doctrine" under the Trump administration. Sin mentioned that despite indications of softer jobs data which could prompt further Federal Reserve rate cuts and support gold, investors are cautious due to the possibility of increased volatility and profit-taking at higher price levels.
While gold currently remains around $110 below the all-time high of $4,549.71 recorded on December 29, its upward momentum is being hindered by the strength of the dollar and profit-taking activities. Recent data revealed a decline in U.S. job openings in November, signaling weakening demand for labor, further influencing market sentiments.
Looking forward, market participants are eagerly awaiting the release of U.S. non-farm payrolls data on Friday for additional insights into monetary policy decisions. On the geopolitical front, the U.S. recently seized two oil tankers linked to Venezuela in the Atlantic Ocean, illustrating a broader strategy by President Donald Trump to influence oil flows in the region.
In other precious metal news, spot silver experienced a 0.4% drop to $77.85 per ounce after reaching an all-time high on December 29. HSBC provided a forecast for silver prices to range between $58 and $88 per ounce in 2021, driven by constrained physical supply, strong investment demand, and elevated gold prices. However, HSBC warned of a potential market correction later in the year.
Spot platinum also exhibited a decline of 0.8% to $2,288.23 per ounce, following a record high last Monday, while palladium dropped by 0.5% to $1,756.42 per ounce.
