- US labour market posts largest jobs gain in 15 months
- Trump threatens "hell" for Tehran if Strait of Hormuz not reopened
- Many Asian, European markets closed for holiday
April 6 (Reuters) - Gold prices slipped on Monday as a firmer U.S. dollar, buoyed by a strong U.S. jobs report, further dampened rate cut bets, while markets awaited remarks from U.S. President Donald Trump amid escalating conflict with Iran.
Spot gold slipped 0.4% to $4,658.90 per ounce by 0706 GMT, while U.S. gold futures for April delivery rose 0.1% to $4,684.30 in thin trade amid holiday closures across parts of Asia and Europe.
"Markets are looking for another so-called headline risk that is coming out later, as Trump holds a press conference pertaining to the current U.S.-Iran situation," said Kelvin Wong, a senior market analyst at OANDA.
Meanwhile, Trump has threatened to rain "hell" on Tehran if it does not reopen the Strait of Hormuz by Tuesday, although recent U.S. intelligence assessments suggest Iran is unlikely to reopen the crucial oil shipping waterway any time soon.
Investors also weighed an Axios report that said the U.S., Iran and a group of mediators are discussing a potential 45-day ceasefire that could pave the way for a permanent end to the war.
Brent oil prices climbed as the war continued to disrupt global energy supplies, fuelling inflation concerns.
While gold is traditionally seen as a hedge against inflation, elevated interest rates tend to dampen demand for the non-yielding asset.
The 10-year U.S. Treasury yield and the dollar index gained, supported by data on Friday showing that U.S. nonfarm payrolls in March increased by the most since December 2024, while the unemployment rate fell to 4.3%.
"The latest robust NFP print has reinforced hawkish central bank nerves, while persistent oil-driven inflation fears continue to crowd out gold's traditional safe-haven sparkle," said Tim Waterer, chief market analyst, KCM Trade.
Traders have almost completely priced out any chances of a U.S. Federal Reserve rate cut this year, compared with the two reductions expected before the Iran war began.
Spot silver fell 0.9% to $72.31 per ounce, spot platinum shed 0.3% to $1,983.62, while palladium gained 0.7% to $1,511.94.
Reporting by Pablo Sinha in Bengaluru; additional reporting by Swati Verma; Editing by Sumana Nandy and Mrigank Dhaniwala
Source: Reuters