PRECIOUS-Gold slips as strong US jobs data offsets Iran tensions

Initial jobless claims fell to 227,000 in the week ended Feb. 7, data showed on Thursday. Resilient labour market ​conditions reinforce the Fed's confidence in the economy, allowing policymakers to maintain elevated rates to ensure inflation ⁠continues to ease.

Gold ‌prices ​eased on Thursday as strong U.S. labour data that dampened hopes of near-term Federal Reserve rate cuts offset safe-haven demand stirred by geopolitical tensions between the ‌U.S. and Iran. Spot gold edged 0.4% lower to $5,059.87 per ounce by 9:30 a.m. ET (1430 GMT). U.S. gold futures for April delivery lost 0.3% to $5,085.10 per ounce.

"A mix of factors impacting gold today. Certainly the better-than-expected payrolls print ‌yesterday is a significant one - it dims the likelihood of Fed rate cuts in the first half of ‌this year, which is a headwind that is perhaps limiting the upside," said Peter Grant, vice president and senior metals strategist at Zaner Metals. Data released on Wednesday showed the U.S. job market began 2026 on firmer footing than expected, reinforcing the view ⁠that policymakers may ​keep rates elevated for ⁠longer. Nonfarm payrolls rose by 130,000 jobs in January, following a downwardly revised 48,000 increase in December, while the unemployment rate edged down ⁠to 4.3%. Initial jobless claims fell to 227,000 in the week ended Feb. 7, data showed on Thursday.

Resilient labour market ​conditions reinforce the Fed's confidence in the economy, allowing policymakers to maintain elevated rates to ensure inflation ⁠continues to ease. Bullion, in turn, is pressured by high interest rates due to its non-yielding nature. Investors now await U.S. inflation data due ⁠on ​Friday for more cues on the Fed's monetary policy path.

But, "t he

ongoing sabre-rattling between

the US and Iran is a bit of a tailwind," Grant added. U.S. President Donald Trump met Israeli Prime Minister Benjamin Netanyahu on Wednesday and ⁠later said they had not reached any "definitive" agreement regarding Iran, but emphasised that negotiations with Tehran would continue.

Global ⁠uncertainty pushes investors towards ⁠gold, an asset traditionally known as a safe store of value. In other metals, silver fell 1.2% to $83.01/oz, after a 4% climb on Wednesday. Spot platinum shed 0.6% ‌to $2,119.83/oz, while ‌palladium rose 0.5% to $1,708.25.

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