Gold and Silver Prices Steady as Trade Uncertainty and Strong U.S. Payrolls Shape Market Sentiment
Gold and silver prices held steady on Thursday as investors assessed renewed global trade uncertainty alongside stronger-than-expected U.S. nonfarm payrolls data.
At 09:00 ET (14:00 GMT), spot gold edged down 0.2% to $5,075.23 per ounce, while April gold futures declined 0.5% to $5,097.09 per ounce. Spot silver dropped 1.2% to $82.897 per ounce, and spot platinum slipped 1.4% to $2,115.45 per ounce.
Despite the pullback, precious metals maintained most of their weekly gains. Ongoing U.S. dollar weakness and rising tensions between the United States and Iran continued to support safe-haven demand.
Trade Uncertainty Returns to the Spotlight
Global trade developments remained a key driver for markets. Reports indicated that U.S. President Donald Trump and Chinese President Xi Jinping could extend their trade truce for up to one year during an upcoming meeting in Beijing in April. The discussions are expected to focus on short-term economic achievements, including renewed Chinese purchase commitments.
Separately, Bloomberg reported that President Trump is considering withdrawing from the North American trade agreement. This move would add fresh uncertainty to negotiations involving the United States, Canada, and Mexico. The US-Mexico-Canada Agreement (USMCA) faces a mandatory review ahead of a potential extension on July 1.
The evolving trade landscape continues to influence investor positioning in gold and silver markets.
Strong Nonfarm Payrolls Weigh on Gold
Gold prices softened after Wednesday’s U.S. nonfarm payrolls report showed stronger-than-expected job growth for January. The data signaled continued resilience in the labor market, reducing expectations that slowing employment conditions would prompt the Federal Reserve to cut interest rates further.
According to CME FedWatch data, markets now assign a 94.1% probability that the Fed will keep interest rates unchanged in March, with a 78% likelihood of no change in April.
The upbeat jobs report also triggered a rebound in the U.S. dollar, placing additional pressure on precious metals. Analysts at OCBC noted that a sustained dollar recovery would require continued positive economic surprises. However, broader structural factors, including uncertainty around Federal Reserve leadership and U.S. policy risks, may limit the strength of any dollar rebound.
Inflation Data and Iran Tensions in Focus
Investors are now awaiting U.S. consumer price index (CPI) data for January, scheduled for release on Friday. Inflation trends, alongside labor market conditions, remain central to the Federal Reserve’s monetary policy decisions.
Meanwhile, safe-haven demand for gold and silver remains supported by ongoing geopolitical tensions between the United States and Iran. Although both sides reported some progress in recent nuclear discussions, Washington is reportedly preparing to deploy a second aircraft carrier to the Middle East.
President Donald Trump has repeatedly urged Tehran to reach an agreement, keeping geopolitical risks firmly on the market’s radar.
