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Gold prices fell on Monday, pressured by a stronger dollar as elevated oil prices on the
back of a protracted Iran war and stronger-than-expected US
jobs data dampened hopes for interest rate cuts by the Federal
Reserve.
Spot gold slipped 0.5% to $4,652.89 per ounce by 0452
GMT, while US gold futures for April delivery held
steady at $4,678.70 in thin trade, with many markets in Asia and
Europe closed for a holiday.
Data on Friday showed that US nonfarm payrolls increased
by 178,000 jobs in March, the most since December 2024, while
the unemployment rate fell to 4.3%. The 10-year U.S. Treasury
yield and the dollar index gained, pressuring greenback-priced
bullion.
Brent oil prices climbed as the U.S.-Israeli war with Iran
continued to disrupt global energy supplies.
“The latest robust NFP print has reinforced hawkish central
bank nerves, while persistent oil-driven inflation fears
continue to crowd out gold’s traditional safe-haven sparkle,”
said Tim Waterer, chief market analyst, KCM Trade.
U.S. President Donald Trump threatened to rain “hell” on
Tehran if it did not make a deal and reopen the Strait of Hormuz
by Tuesday, while recent U.S. intelligence assessments suggest
Iran is unlikely to reopen the passage any time soon.
The surge in crude prices have stoked concerns about
inflationary pressures. While gold is traditionally seen as a
hedge against inflation, elevated interest rates tend to dampen
demand for the non-yielding asset.
Traders have almost completely priced out any chances of a
Fed rate cut this year. Before the Iran war began, there were
expectations of two reductions this year.
COMEX gold speculators increased net long positions by 1,098
contracts to 93,872 in the week ended March 31.
Spot silver fell 0.9% to $72.34 per ounce, spot
platinum shed 0.6% to $1,977.29, while palladium
edged 0.3% higher to $1,500.25.
Published on April 6, 2026
