By: Economy Middle east

Gold prices slipped on Thursday as the U.S. dollar strengthened following better-than-expected January employment figures, which tempered expectations for imminent interest rate cuts. Investors are now looking ahead to Friday’s inflation report for further guidance on the Federal Reserve’s policy path.

As of 5:03 GMT, spot gold fell 0.11 percent to $5,067.68 an ounce, after finishing the previous session up more than 1 percent. Meanwhile, U.S. gold futures for April delivery declined 0.27 percent to $5,084.60 per ounce.

In the UAE, gold rates posted a slight AED0.25 increase, with 24-carat gold gaining to AED610.75 and 22-carat gold rising to AED565.5. Additionally, 21-carat gold edged up to AED542.25, and 18-carat gold rose to AED464.75.

Meanwhile, 14-carat gold increased to AED362.5

U.S. dollar index climbs on robust jobs report

Gold prices fell as the U.S. dollar index climbed 0.12 percent to 96.95 after an unexpectedly robust jobs report pointed to resilience in the American economy. A firmer dollar typically weighs on commodities priced in the greenback, as it raises costs for buyers using other currencies.

The stronger employment data also prompted markets to slightly scale back expectations for Federal Reserve rate cuts, which may have contributed to gold’s muted performance.

U.S. job growth picked up more than anticipated in January, while the unemployment rate eased to 4.3 percent. However, the sharpest rise in payrolls in 13 months may overstate the labor market’s strength, as revised figures showed the economy created just 181,000 jobs in 2025, well below the previously reported 584,000.

Fed to hold interest rates steady until June

The U.S. budget deficit is projected to widen slightly to $1.853 trillion in fiscal 2026, according to a forecast released on Wednesday by the Congressional Budget Office, indicating that President Donald Trump’s economic policies are further straining the country’s fiscal outlook at a time of subdued growth.

The Federal Reserve is now expected to hold interest rates steady through the remainder of Chair Jerome Powell’s term, which ends in May, before delivering a rate cut in June, which could support gold prices. Economists, however, cautioned that monetary policy under his anticipated successor, Kevin Warsh, could tilt too accommodative.

Markets are now turning their attention to Thursday’s weekly jobless claims data and Friday’s inflation report for additional signals on the Fed’s policy trajectory.

Other precious metals

As gold prices declined, the broader precious metals market witnessed mixed movement.

Spot silver gained 0.02 percent to $84.04 per ounce, following a 4 percent surge in the previous session. Platinum slipped 0.10 percent to $2,129.70 per ounce, while palladium bucked the trend, gaining 1.52 percent to $1,725.55.