Gold prices ease in anticipation of US labor data

Gold prices tumbled today, Feb. 1, after the Federal Reserve fixed interest rates during yesterday’s meeting, as Chairman Jerome Powell pushed back strongly against expectations of a rate cut by March.

Bullion for April delivery ticked 0.42% lower to $2,058.80 per ounce at 10:54 am Makkah time, while spot prices stabilized at the $2,040/ounce level.

Silver futures for March delivery, likewise, slumped by 1.05% to $22.93 an ounce, with platinum spot prices also down 0.73% to $915.60 per ounce.

The Fed left interest rates unchanged within the 5.25%-5.50% range for the fourth time in a row yesterday. In the press conference following the meeting, Powell stressed that a lot of work is still needed to combat soaring inflation.

Although Powell acknowledged that inflation has slowed over recent months, he noted that this is not enough to convince monetary policymakers of the possibility of a rate cut, and that they need to see continued evidence to build confidence that inflation is moving sustainably toward their 2% goal.

Today, markets are awaiting the release of weekly data on US jobless claims, with expectations suggesting a decrease to 213,000 applications. Further, the monthly non-agricultural jobs report is due tomorrow, Feb. 2, amid forecasts that the US economy will add 177,000 new jobs, down from 216,000.