A stronger U.S. dollar and renewed hope for a trade war resolution has taken its toll on gold prices, with the precious metal being up to three-month lows.
In early trading Thursday, gold and silver prices are slightly lower, falling to more-than-three-month lows.
A strong U.S. financial report revealed that keener trader and investor risk cravings are keeping safe-haven gold and silver markets under pressure.
A higher U.S. dollar index is likewise a bearish element for the precious metal markets. June gold futures were last down $7.10 an ounce at $1,288.20.
Expectations for Washington and Beijing to resolve trade war worries have been cited as a positive influence in stock-market gains, another factor which is weakening gold’s position.
Reports imply that President Trump is likely to reveal a plan to discuss trade issues with China’s president, Xi Jinping when he meets the nation’s vice premier later on Thursday. At the same time, there are apparently major difficulties to clear over U.S. desires to preserve tariffs on Chinese products, which could impact the outcome of a deal.
Despite the many unknowns still remaining, speculation in recent days for advancement in trade talks reinforced the desire for stocks and away from gold, while the U.S. dollar twisted between gains and losses before firming Thursday and further assisting a precious metals decline.
Traders and investors worldwide are still particularly upbeat, due in part to confidence the U.S. and China will soon reach a trade deal. Reports say the U.S. and China are very near a trade offer.
Jobs report could push gold lower
Market spectators are awaiting the U.S. Labor Department’s job report for March, which is set to be released early Friday.
It’s likely the most impactful financial information point of the month. The crucial non-farm payrolls number in the report is forecast to be up 175,000 in March, with the joblessness rate anticipated to remain at 3.8 percent, which could further weigh on the price of gold.
The ADP national employment report for March, released on Wednesday, revealed an increase of 129,000 jobs. The payrolls number was forecast to be up 173,000.