Gold Eases to $3,238 as Trade Talks and Strong Jobs Data Temper Rally

Trading screens showed gold at $3,238.89 per ounce early Saturday, with a minimal gain of 0.18% from Friday’s close.

The precious metal has steadied after reaching a two-week low on Thursday. Gold remains on track for its second consecutive weekly decline, sliding 2.1% since last week.

The recent pullback marks a significant correction from the all-time high of $3,500.05 recorded on April 22. Market sentiment shifted as U.S.-China trade tensions showed signs of easing.

The Chinese commerce ministry confirmed that the United States has repeatedly expressed willingness to engage in tariff negotiations.

“Gold seems to have reached a temporary ceiling around $3,500, particularly if some trade agreements start to materialize,” said Daniel Pavilonis, senior market strategist at RJO Futures.

Stronger-than-expected U.S. employment data further pressured gold prices. April nonfarm payrolls increased by 177,000 jobs, far exceeding the 130,000 forecast by analysts.

This robust jobs report has dampened expectations for early Federal Reserve interest rate cuts. Treasury yields consequently rose, making non-yielding gold less attractive to investors.

Despite the recent pullback, institutional interest remains strong. The World Gold Council reported that gold ETFs attracted 226.5 metric tons worth $21.1 billion in the first quarter.

Gold Eases to $3,238 as Trade Talks and Strong Jobs Data Temper Rally

This represents the largest quarterly inflow in three years, increasing total ETF holdings by 3% to 3,445 tons.

U.S.-listed funds led with acquisitions of 133 tons, while European-listed funds added 54.8 tons. Central bank purchasing continues to provide fundamental support for gold prices.

Physical gold markets show varying reactions to the recent price movements. In India, 24 karat gold trades at ₹94,970 per 10 grams, while 22 karat gold costs ₹90,450.

These prices have declined from peaks seen in late April, when gold reached an all-time high of ₹74,320 per sovereign.

Market analysts maintain a positive long-term outlook despite short-term volatility. The annual gold price forecast has topped $3,000 for the first time in consensus polling. Experts project gold will average $3,065 per ounce in 2025 and $3,000 in 2026.

“Gold’s success will likely hinge on the misfortunes of other markets,” noted a commodity strategist from Saxo Bank.

Support continues from concerns about de-dollarization and the effects of U.S. tariffs on global economic stability. However, analysts caution that elevated prices are affecting jewelry demand.

The industrial metal silver has underperformed gold, rising only 12% this year amid economic growth concerns. Forecasts place silver at an average of $33.10 per ounce in 2025 and $34.58 in 2026.

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