Meanwhile, Silver (XAG/USD) is trading at 76.55, down 0.56% for the day. However, the stronger US dollar was seen as a key reason behind its decline. Traders seems hesitate to place any strong bid ahead of key US jobs data.
US Dollar Strength and Fed Rate Hopes Keep Gold in Check
On the US front, the broad-based US dollar remains strong and reaching a near one-month high. Although, ongoing expectations of interest rate cuts by the US Federal Reserve can limit any further gains ahead of the closely watched US Nonfarm Payrolls report due later today.
Notably, the US economy is expected to add around 60,000 jobs in December, slightly fewer than the previous month, while the unemployment rate is forecast to ease to 4.5%. These numbers will influence expectations for Fed rate cuts and likely affect moves in the US dollar and gold.
Global Conflicts and Political Moves Boost Gold as a Safe Haven
Across the ocean, the ongoing geopolitical tensions around the world are also helping to support gold prices. For example, the US involvement in Venezuela, ongoing tensions between China and Japan, and the long-running Russia-Ukraine war making investors cautious and boosting gold’s appeal as a safe haven. This can help gold and silver prices to limit their losses.
At the same time, US President Donald Trump said the US could be involved in Venezuela for years to access its oil resources. Meanwhile, China has tightened export controls on rare earth materials to Japan following diplomatic disagreements.
Short-Term Forecast
Gold near $4,470 may grind higher toward $4,520 if support holds, while silver around $77 targets $82.60, with dollar strength limiting upside near-term ahead of US jobs data release risk.