Gold prices slipped from one-year highs on Thursday as the dollar regained some ground, while investors awaited the U.S. non-farm payrolls report to gage the Federal Reserve’s monetary policy strategy.
Spot gold was down 0.04% at $2,019.15 U.S. per ounce, after hitting its highest since March 2022 on Wednesday. U.S. gold futures also fell marginally to $2,035.30.
The dollar index rose 0.1%, making bullion expensive for overseas buyers.
The economic data points this week were major components supporting gold prices, while also noting some profit-booking ahead of the Good Friday holiday.
Bullion has gained about 2.2% so far this week, after a surprise oil output cut by OPEC+ and weak U.S. economic data over the week added to fears of an economic slowdown and sent the yellow metal soaring above $2,000.
Wednesday’s data showed the U.S. services sector slowed more than expected in March. Separate data showed private sector job adds fell well short of expectations.
Investors now await Friday’s non-farm payrolls report for March.
While gold is traditionally considered a hedge against inflation and economic uncertainties, higher interest rates dim non-yielding bullion’s appeal.