Ammon News - Gold prices fell on Monday, pressured by ‌a stronger dollar as elevated oil prices on the back of a protracted Iran war and stronger-than-expected U.S. jobs data dampened hopes for interest rate cuts by the Federal Reserve.

Spot gold ​slipped 0.5% to $4,652.89 per ounce by 0452 GMT, while U.S. gold futures ​for April delivery held steady at $4,678.70 in thin trade, with many ⁠markets in Asia and Europe closed for a holiday.

Data on Friday showed that ​U.S. nonfarm payrolls increased by 178,000 jobs in March, the most since December 2024, while ​the unemployment rate fell to 4.3%. The 10-year U.S. Treasury yield and the dollar index gained, pressuring greenback-priced bullion.
Brent oil prices climbed as the U.S.-Israeli war with Iran continued to disrupt ​global energy supplies.

"The latest robust NFP print has reinforced hawkish central bank nerves, ​while persistent oil-driven inflation fears continue to crowd out gold's traditional safe-haven sparkle," said Tim Waterer, ‌chief ⁠market analyst, KCM Trade.

U.S. President Donald Trump threatened to rain "hell" on Tehran if it did not make a deal and reopen the Strait of Hormuz by Tuesday, while recent U.S. intelligence assessments suggest Iran is unlikely to reopen the passage any time soon.

The ​surge in crude prices ​have stoked concerns ⁠about inflationary pressures. While gold is traditionally seen as a hedge against inflation, elevated interest rates tend to dampen demand for ​the non-yielding asset.

Traders have almost completely priced out any chances ​of a ⁠Fed rate cut this year. Before the Iran war began, there were expectations of two reductions this year.

COMEX gold speculators increased net long positions by 1,098 contracts to ⁠93,872 ​in the week ended March 31.
Spot silver fell 0.9% ​to $72.34 per ounce, spot platinum shed 0.6% to $1,977.29, while palladium edged 0.3% higher to $1,500.25.

Reuters