Gold Drops as Bets on Near-Term Rate Cuts Fade Following Jobs Data

Gold prices fell on Monday as the dollar strengthened and U.S. Treasury yields rose after a jobs report indicated strong performance in the sector, undermining expectations for near-term interest rate cuts by the Federal Reserve. By 05:56 GMT, spot gold was down 0.5% at $2029.03 per ounce. U.S. gold futures declined 0.4% to $2045.50 per ounce. Matt Simpson, a senior analyst at City Index, stated, "Major speculators and managed funds are reducing their long exposure to gold futures for the fourth week. With Jerome Powell reiterating the mention of three rate cuts this year, there is still debate on whether gold can rise above this level." The dollar index hit its highest level in eight weeks, making gold more expensive for holders of other currencies, while yields on benchmark 10-year Treasury bonds rose above 4%. Data from the U.S. Department of Labor on Friday showed that non-farm payrolls increased by 353,000 jobs in January, nearly double the 180,000 jobs forecast by economists surveyed by Reuters. For other precious metals, spot silver fell 0.5% to $22.56 per ounce, palladium dropped 0.8% to $939.26, while platinum rose 0.5% to $894.99.