Gold prices fall as Treasury yields rise, US jobs report awaited

Gold prices fell during trading on Thursday, March 6, due to the rise in US Treasury yields and profit-taking, while investors focus on the US jobs data expected to be released on Friday, in order to gain insights on the Federal Reserve’s monetary policy during the coming period.

Gold prices in spot transactions fell by 0.1% to $2,915.83 per ounce at 01:49 p.m. ET (1849 GMT), after rising during the past three sessions.

US gold futures remained unchanged at $2,926.6 at the time of settlement, according to Reuters.

“We are seeing only some slight profit-taking pressure from the recent gains, and the underlying fundamentals remain bullish… Another thing that is putting some slight pressure on the gold market is the rise in bond yields,” said Jim Wyckoff, senior market analyst at Kitco Metals.

The yield on the 10-year US Treasury note hit its highest level in more than a week, reducing the appeal of non-yielding gold.

Gold prices, a safe haven, have risen more than 10% since the start of the year amid geopolitical uncertainty, hitting a high of $2,956.15 on February 24.

The United States imposed a 25% tariff on imports from Mexico and Canada on Tuesday, and additional tariffs on goods imported from China. However, the White House confirmed on Wednesday that it would exempt automakers from tariffs on Canada and Mexico for a month, provided they comply with the rules of the North American Trade Agreement, and announced today that it would postpone the implementation of tariffs on Mexican goods that comply with the trade agreement until April 2.

Meanwhile, all eyes are on the US non-farm payrolls report due on Friday, which economists polled by Reuters expect to show a gain of 160,000 jobs in February.

The Federal Reserve left interest rates unchanged at its first meeting in 2025 after cutting them three times last year, but market expectations are that the rate cuts will resume in June.

“There is a possibility of more rate cuts from the Fed than currently anticipated amid weak data, which adds another layer of uncertainty to the markets,” said Fawad Razaqzadeh, market analyst at City Index and FOREX.com.

“Amid all these mixed signals, gold has managed to hold near its recent highs and remains on track to reach $3,000 sometime in the near future,” he added.

Among other metals, spot silver prices rose 0.2% to $32.70 per ounce, palladium rose 0.4% to $946.58, while platinum was steady at $965.76.