Gold prices fell on Monday as the USD strengthened, supported by the positive US jobs report, thereby further weakening expectations of interest rate cuts, while the market is awaiting statements from US President Donald Trump amid escalating conflict with Iran.
Spot gold prices rose 0.3% to 4.694.32 USD per ounce at 3:27 PM Vietnam time. Along with that, US gold futures contracts rose slightly 0.1% to 4.684.30 USD per ounce amid sluggish trading due to holidays in many Asian and European markets.
Mr. Kelvin Wong, senior market analyst at OANDA, said the market is waiting for new information that could strongly impact prices, as Mr. Trump prepares to hold a press conference related to the situation in the US and Iran.
Meanwhile, Mr. Trump warned that he would "take hell" on Tehran if it does not reopen the Strait of Hormuz before Tuesday, although recent US intelligence assessments show that Iran is unlikely to reopen this important oil transport route soon.
Investors are also considering information from Axios news site that the US, Iran and an intermediary group are discussing the possibility of establishing a 45-day ceasefire, which could pave the way for a complete end to the conflict.
Brent oil prices rose as war continues to disrupt global energy supplies, thereby raising concerns about inflation.
Although gold is often seen as an inflation hedging asset, the high interest rate environment reduces the attractiveness of this non-interest-generating precious metal.
10-year US Treasury bond yields and the USD index simultaneously increased, supported by data released on Friday showing that the number of new jobs outside of agriculture in the US in March increased the most since December 2024, while the unemployment rate fell to 4.3%.
Mr. Tim Waterer, Head of Market Analysis at KCM Trade, said positive employment data has strengthened expectations that central banks will maintain a tighter stance, while concerns about inflation due to oil prices continue to overshadow the traditional safe-haven role of gold.
Traders have almost completely eliminated the possibility that the US Federal Reserve (Fed) will cut interest rates this year, compared to the expectation of two interest rate cuts before the outbreak of conflict with Iran.
In other metals, spot silver prices fell 0.9% to $72.31 per ounce, platinum fell 0.3% to $1,983.62 per ounce, while palladium rose 0.7% to $1,511.94 per ounce.
