Gold prices are falling amid the rise of the dollar and anticipation of the US jobs report.
Gold prices witnessed a noticeable decline during trading on Thursday, May 1st, influenced by the rise of the US dollar, in addition to the prevailing uncertainty regarding US trade policies, amidst anticipation for the release of the monthly jobs report that may provide new insights into the Federal Reserve's monetary policy direction.
Trade statements fuel uncertainty
US Trade Representative Jameson Greer confirmed in statements on Wednesday, April 30th, that President Donald Trump's administration expects to reach preliminary agreements on tariffs with several trading partners in the coming weeks. However, Greer noted the absence of any official talks with China on this matter, further intensifying market volatility.
US GDP contraction
In related news, the latest economic data revealed a 0.3% contraction in the US Gross Domestic Product in the first quarter of the current year, contrary to analysts' expectations of a 0.2% growth. This decline marks the first of its kind in three years, attributed by experts to US companies accelerating imports before the tariffs that the Trump administration plans to implement.
Awaiting the Non-Farm Payrolls Report
Investors are now looking towards the upcoming Non-Farm Payrolls report scheduled for release on Friday, which is expected to show a slowdown in the employment rate, while the unemployment rate may remain stable at 4.2%.
This report is considered one of the key factors that will influence the Federal Reserve's decisions on monetary policy in the near future.
Gold Performance in Markets
In trading, gold futures fell by about 2.6%, with the price per ounce reaching $3232.5, amidst market pressures due to intertwined economic and political factors.
It is worth noting that markets remain cautiously watchful, with increasing expectations of gold being affected by more fluctuations in the upcoming period.
