Gold prices ticked lower on Thursday, after unexpectedly strong US jobs data for January dented hopes for more interest rate cuts from the Federal Reserve in the near term, while a firmer dollar added to pressure on the market.
Spot gold edged 0.3% lower to $5,064.90 per ounce by 0820 GMT. US gold futures for April delivery lost 0.2% to $5,086.30 per ounce.
Spot silver fell 0.5% to $83.59 per ounce, after a 4% climb on Wednesday, Reuters said.
"Gold eased back from above $5,100 and silver from above $86 after stronger-than-expected US jobs data tempered expectations of imminent Fed rate cuts, lifting the dollar," said Ole Hansen, head of commodity strategy at Saxo Bank.
The US dollar index edged higher, making dollar-priced metals more expensive for other currency holders.
"The renewed focus on incoming economic data suggests a degree of normalization following the recent volatility spike, while the upcoming Lunar New Year holiday in China may further dampen risk appetite and liquidity," Hansen added.
Fed policymakers appear likely to keep interest rates on hold for longer after data on Wednesday showed the US job market began 2026 on a stronger footing than expected.
US job growth unexpectedly increased in January by 130,000 jobs after a downwardly revised 48,000 rise in December, while the unemployment rate fell to 4.3%.
Economists polled by Reuters had forecast payrolls advancing by 70,000 jobs.
Lower interest rates reduce the opportunity cost of holding non-yielding gold.
Investors are waiting for the weekly US jobless claims report later in the day and inflation data on Friday for more cues on the Fed's monetary policy path.
"I think the CPI (inflation) print on Friday will be key. If we get a softer CPI print coupled with the jobs report data, that could keep gold from advancing much further and could see gold make a foray back below the $5000/oz mark," said Zain Vawda, analyst at MarketPulse by OANDA.
Spot platinum shed 0.7% to $2,117.09 per ounce, while palladium rose 0.7% to $1,704.50.
