Dollar weakening causes gold to soar; US Payroll data is being watched.

A little rebound in the U.S. dollar and rising Treasury rates damaged gold on Thursday as investors anticipated U.S. nonfarm payroll data to gauge the Federal Reserve’s interest rate trajectory in the face of growing international trade tensions.

As of 0852 GMT, U.S. gold futures GOLD had dropped 0.5% to $2,910.80, while spot gold GOLD was down 0.5% to $2,903.69 an ounce.

The dollar index DXY recovered some of its previous losses, but the attraction of non-yielding bullion decreased as benchmark U.S. Treasury rates, or US10Y, increased.

Jigar Trivedi, a senior analyst at Reliance Securities, stated, “The dollar index has recovered from 104.01 to 104.18 – that could have pushed the yellow metal lower further.”

Yet, “the broad undertone is really positive in gold.”

As long as automakers followed current free trade regulations, the United States granted them a one-month exemption from the 25% tariffs on Canada and Mexico.

According to the White House, U.S. President Donald Trump is also receptive to suggestions on more goods that need to be free from the tariffs.

China, Canada, and Mexico have all experienced difficult ties as a result of Trump’s tariffs. Mexico has threatened to react, while China and Canada have replied with duties of their own on a number of U.S. products.

Concerns over Trump’s tariff intentions have caused safe-haven gold to rise more than 10% so far this year, reaching a record high of $2,956.15 on February 24.

Gold is seen as a hedge against inflation and political unpredictability.

“In general, the forecast for gold prices remains optimistic. However, before the bigger surge continues, there may be a more significant pullback in the near future, according to Ilya Spivak, head of global macro at Tastylive.

According to a Reuters survey, the market is anticipating Friday’s non-farm payrolls data, which is predicted to show an increase of 160,000 jobs for February.

Platinum PL1 dropped 0.5% to $32.47 an ounce, while silver XAGUSD1 did the same!
Palladium XPDUSD1 fell 0.9% to $934.25, and it fell 0.7% to $959.13.