Gold prices continued to edge lower during Asian trading on Thursday, retreating from strong gains seen earlier in the week as a firmer U.S. dollar reduced demand for bullion ahead of key U.S. labor market data.
Spot gold declined 0.5% to $4,436.62 per ounce by 06:40 GMT, while U.S. gold futures slipped 0.4% to $4,442.86 per ounce. The pullback reflected profit-taking following the recent rally.
Strength in the U.S. dollar made gold more expensive for holders of other currencies. The dollar index held steady after recording gains over the previous two sessions, adding pressure to precious metals.
Investor caution remained elevated ahead of Friday’s closely watched U.S. nonfarm payrolls report, a major indicator that could influence expectations for interest rate policy at the Federal Reserve. Weaker-than-expected jobs data could revive bets on rate cuts, which would typically support gold by lowering yield expectations.
U.S.–Venezuela tensions help limit downside
Geopolitical developments helped cushion gold’s losses, as tensions involving the United States and Venezuela continued to underpin safe-haven demand.
On Wednesday, U.S. authorities seized two oil tankers linked to Venezuelan crude exports, including one sailing under a Russian flag. The action marked a further escalation in Washington’s enforcement of sanctions on Venezuelan oil shipments.
U.S. officials said the move was aimed at disrupting sanctioned oil flows that provide financial support to the Venezuelan government and circumvent existing restrictions. The seizure of a vessel flying a Russian flag prompted strong criticism from Russia, which reportedly described the action as piracy and called for the release of its nationals among the crew.
For gold markets, the heightened geopolitical strain helped sustain some defensive demand, even as traders largely waited for clearer signals from Friday’s payrolls data.
Other metals also weaken
Broader metals markets also moved lower during the session. Silver prices fell 2.3% to $76.32 per ounce, while platinum slid 4.3% to $2,207.60 per ounce.
Copper prices were mixed. Benchmark copper futures on the London Metal Exchange dipped 0.3% to $12,854.20 per metric ton, while U.S. copper futures were little changed at $5.85 per pound.
