Spot gold fell 0.7% to $4,423.20 an ounce by early Asian trading, while U.S. gold futures for February delivery were also down 0.7% at $4,432.00. The pullback came as markets prepared for the U.S. nonfarm payrolls report later this week, seen as crucial for shaping expectations around the Federal Reserve’s policy outlook.
Market participants continued to balance geopolitical risks with macroeconomic signals from the United States. “Traders are weighing heightened geopolitical tensions, including U.S. intervention in Venezuela, against incoming U.S. economic data,” said Bernard Sin, regional director for Greater China at MKS PAMP.
The dollar hovered near a more than two-week high, supported by positioning ahead of several U.S. labour market releases. While softer employment data has reinforced expectations of further Fed rate cuts — a generally supportive factor for non-yielding assets such as gold — sentiment has remained cautious amid elevated prices and the risk of profit-taking.
Gold is currently trading about $110 below its record peak of $4,549.71 reached on December 29, with gains capped by dollar strength and investor consolidation after the strong rally.
Data released on Wednesday showed U.S. job openings fell to a 14-month low in November, while hiring remained sluggish, pointing to cooling labour demand. Friday’s payrolls report is expected to provide additional clarity on the trajectory of U.S. monetary policy.
Analysts also flagged potential technical pressure from index-related flows. Kelvin Wong, senior market analyst at OANDA, said the annual rebalancing of the Bloomberg Commodity Index could weigh on precious metals in the short term, as lower target weightings for gold and silver may prompt speculative profit-taking. The rebalancing window runs from January 9 to January 15.
Elsewhere in the precious metals complex, spot silver slid 2.7% to $76.01 an ounce, retreating further after hitting a record $83.62 in late December. HSBC forecasts silver to trade in a wide $58–$88 range in 2026, supported by tight supply and strong investment demand, though it cautions that a correction later in the year is possible.
Platinum fell 3.2% to $2,232.50 an ounce after reaching a record high earlier this week, while palladium declined 2.4% to $1,720.75 an ounce, tracking the broader pullback across metals markets.