Gold falls as commodity index adjustments weigh ahead of US jobs data
Investors are looking to the non-farm payrolls data for monetary policy cues
[BENGALURU] Gold fell on Friday (Jan 9) as commodity index readjustments and a firm US dollar kept the pressure on prices in the near term, with investors positioning ahead of the US non-farm payrolls data later in the day.
Spot gold fell 0.4 per cent to US$4,458.10 per ounce as at 9.26 am. Bullion hit a record high of US$4,549.71 on Dec 26.
US gold futures for February delivery firmed 0.2 per cent to US$4,467.60.
The US dollar advanced at the start of Asia trade, as traders awaited the release of the latest US jobs report and braced for a US Supreme Court decision on US President Donald Trump’s use of emergency tariff powers.
The annual Bloomberg Commodity Index rebalancing, a periodic adjustment of commodity weightings to keep the index aligned with market conditions, begins this week and is expected to maintain pressure on the precious metals market.
New US unemployment claims rose moderately last week amid a relatively low number of layoffs, while demand for labour remained sluggish, with businesses squeezing more output from their existing workforce.
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Investors, currently expecting at least two US Federal Reserve rate cuts this year, are looking to the non-farm payrolls data for monetary policy cues.
The US Senate voted on Thursday to advance a resolution that would bar Trump from taking further military action against Venezuela without congressional authorisation, even as the president said US “oversight” of Venezuela could last years.
Non-yielding assets tend to do well in a low-interest-rate environment and during geopolitical or economic uncertainties.
Gold prices could rise to US$5,000 an ounce in the first half of 2026 on rising geopolitical risks and debt, HSBC said.
Meanwhile, Glencore and Rio Tinto said they were in early buyout talks that could potentially create the world’s largest mining company with a combined market value of nearly US$207 billion.
Spot silver lost 1.5 per cent to US$75.71 per ounce after hitting an all-time high of US$83.62 on Dec 29.
Spot platinum shed 2.9 per cent to US$2,202.50 per ounce after scaling a record peak of US$2,478.50 last Monday.
Palladium fell 2.1 per cent to US$1,749.25 per ounce. REUTERS
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