Gold retreats from year-high as dollar surges before US data

Gold prices retreated from their highest levels in a year today, Thursday, as the dollar regained some strength while investors waited for the non-farm payrolls report in the United States to assess the Federal Reserve’s monetary policy strategy.

According to Reuters, spot gold fell 0.3 percent to $2,014.26 an ounce by 0543 GMT, after reaching its highest price since March 2022 on Wednesday. And US gold futures fell 0.3 percent to $ 2029.80.

The dollar index rose 0.2 percent, making bullion too expensive for buyers holding other currencies.

“What is happening in the market is because of some technical correction because the rise was very sharp,” said Ajay Kedia, director at Kedia Commodities in Mumbai.

He added that the economic data this week were key elements in supporting gold prices and also pointed to some profit-taking before the Good Friday holiday.

Gold rose about 2.4 percent this week after a sudden cut in oil production by the OPEC + alliance and weak US economic data throughout the week, which increased fears of an economic slowdown and pushed the yellow metal to rise above $2,000.

Data on Wednesday showed the US services sector slowed more than expected in March. Separate data showed that new jobs in the private sector were much lower than expected

Investors are now awaiting the non-farm payrolls report for March, which is due on Friday

As for other precious metals, silver lost 0.7 percent to $24.81 an ounce, while platinum rose 0.5 percent to $1,001.67, and palladium fell 0.2 percent to $1,426.95.