Those strong numbers supported the dollar, which is hovering near two-year highs, and pushed up U.S. Treasury yields. As a result, non-yielding assets like gold are less attractive to investors.
Despite these pressures, uncertainty surrounding the US economic outlook and global geopolitical tensions have not diminished gold's appeal as a safe-haven asset.
Silver falls on Fed's hawkish policies
Silver (XAG/USD) was also under selling pressure, trading at $30.42 and at one point hitting an intraday low of $30.10. Like gold, silver has been weighed down by a strong US dollar and rising bond yields. The Fed's cautious approach to rate cuts further undermines silver's appeal as a non-interest bearing asset.
Geopolitical tensions create mixed support
Geopolitical uncertainty continues to provide limited support to gold prices. Tensions in the Middle East and sanctions targeting Russia's energy sector have heightened investor caution. The United States and Britain have imposed sanctions on about 200 ships involved in Russian oil exports, sending tensions into global markets.
As markets await Wednesday's US inflation data, gold and silver prices remain weighed down by a strong US labor market and hawkish monetary policy. However, geopolitical risks may maintain some of the demand for these traditional safe havens.
short term forecast
Gold is hovering around $2,688, and a move above the $2,677 pivot could be bullish. Silver is trading at $30.42 with support held at $30.50. Both metals are facing pressure from a stronger US dollar and rising yields.
