Gold Dips as Dollar Strengthens: Market Awaits Jobs Data and Geopolitical Talks

In a surprising market shift, gold prices fell on Wednesday, reversing recent gains as the dollar strengthened. This prompted investors to secure profits ahead of anticipated U.S. jobs data and new geopolitical insights.

By early afternoon, spot gold saw a 0.6% decline at $4,907.69 per ounce, as it retraced from an earlier 3.1% increase. U.S. gold futures remained stable at $4,930.30 per ounce, following a substantial 5.9% surge on Tuesday.

The U.S. dollar index reached a one-week high, increasing the cost of dollar-priced gold for international buyers. According to David Meger, metals trading director at High Ridge Futures, the stronger dollar applied pressure on gold, leading to profit-taking after record highs.