NEW YORK: Gold prices held steady near a one-week high on Thursday, while silver edged lower in early trade as investors assessed easing pressure in the U.S. dollar, lower Treasury yields and a drop in oil prices. Spot gold was little changed at $4,688.16 an ounce, keeping close to levels last seen on April 27. U.S. gold futures for June delivery rose 0.1% to $4,696.60, while spot silver slipped 0.2% to $77.16 an ounce.
The muted move in gold followed a sharp rise in the previous session, when bullion climbed nearly 3% as lower crude prices eased concerns that higher energy costs could feed inflation and keep interest rates elevated. The rally lifted gold to its highest point in more than a week and helped the metal recover from a recent pullback that had pushed prices to their lowest level in more than a month earlier this week.
The market backdrop remained supportive for bullion on Thursday as the dollar hovered near a more than three-month low, making gold less expensive for buyers using other currencies. Benchmark 10-year U.S. Treasury yields were also lower on the week, reducing the opportunity cost of holding non-yielding assets such as gold. Brent crude prices, meanwhile, were down about 6% this week, easing one of the main inflation pressures that had weighed on sentiment.
Gold supported by softer dollar
Gold has still fallen more than 10% since the conflict that began in late February, a period in which higher oil prices added to inflation worries and reinforced expectations that borrowing costs could stay higher for longer. Thursday’s steadier tone suggested that investors were recalibrating after several volatile sessions across commodity and currency markets. The latest moves left bullion supported by a softer dollar and lower yields, even as broader risk sentiment remained sensitive to developments in the Middle East.
Silver lagged gold in early trade, falling slightly even as the broader precious metals complex turned mixed. Platinum rose 0.1% to $2,062.50 an ounce, while palladium eased 0.3% to $1,533.25. The divergence reflected a market that remained selective after Wednesday’s broad rally in bullion. Gold futures held a modest premium to spot prices, indicating that traders were still positioning carefully rather than extending the previous session’s gains aggressively.
Focus turns to U.S. jobs data
Attention is now shifting to the April U.S. employment report, due on Friday from the U.S. Bureau of Labor Statistics, with markets watching for fresh evidence on labor market conditions after recent swings in inflation expectations and energy prices. The data is expected to play a key role in shaping views on the Federal Reserve’s next policy steps. For bullion traders, the report has become the next major checkpoint after a week dominated by moves in oil, the dollar and government bond yields.
Thursday’s price action left gold holding firm but not breaking decisively higher, reinforcing the view that bullion remains tied closely to macroeconomic signals rather than moving on a single driver. With silver softer, platinum slightly firmer and palladium lower, the session underscored a cautious tone across precious metals after a rapid rebound in gold. Markets now enter Friday with bullion near recent highs and traders looking to U.S. labor data for the next directional cue – By Content Syndication Services.