Gold prices fell on Thursday after the dollar strengthened following stronger-than-expected U.S. jobs data for January. The report reduced expectations for near-term interest rate cuts, while investors await inflation data scheduled for release on Friday for further clues on monetary policy.

As of 03:18 GMT, spot gold declined 0.3 percent to $5,065.98 per ounce, after closing the previous session up more than 1 percent.

U.S. gold futures for April delivery lost 0.2 percent, falling to $5,087.30 per ounce.

Christopher Wong, an analyst at OCBC, said, "The strong jobs report, which slightly reduced expectations for interest rate cuts, may have contributed to the weak movement in gold prices."

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The dollar rose following the jobs report, which pointed to the resilience of the U.S. economy. A stronger dollar makes dollar-denominated metals more expensive for holders of other currencies.

U.S. job growth accelerated unexpectedly last month, and the unemployment rate fell to 4.3 percent. However, the largest monthly increase in jobs in 13 months may overstate the strength of the labor market, as revisions showed the economy added only 181,000 jobs in 2025, rather than the previously estimated 584,000.

According to yesterday’s Congressional Budget Office projections, the U.S. budget deficit is expected to grow slightly in fiscal year 2026 to $1.853 trillion, indicating that President Donald Trump’s economic policies are worsening the country’s fiscal position amid slow economic growth.

A Reuters poll indicated that the Federal Reserve is likely to keep interest rates unchanged during Chairman Jerome Powell’s term, which ends in May, but may cut them immediately afterward in June. Economists have warned that under his potential successor, Kevin Warsh, monetary policy could become highly accommodative.

Investors are now awaiting the weekly jobless claims report today and inflation data on Friday to gauge the future path of monetary policy.

Other precious metals also moved: spot silver fell 0.3 percent to $83.81 per ounce after gaining 4 percent on Wednesday.

Platinum dropped 0.3 percent to $2,126.52 per ounce, while palladium rose 1.4 percent to $1,722.67 per ounce.