Gold prices fall slightly due to dollar recovery

Gold Prices fall slightly as the dollar recovers and the market is waiting for signals from the U.S. jobs report. Spot gold prices fell 0.1% to $2,018.53 per ounce, but remained up 2.6% on economic concerns. U.S. gold futures also slipped 0.1% to USD 2,034.30. OPEC+'s surprise oil production cuts and weak U.S. economic data sparked fears of a potential recession in the U.S., pushing gold above USD 2,000.

Vandana Bharti, assistant vice president of commodity research at SMC Global Securities, said the market is overstretched, which is why prices are weakening. The dollar's recovery and some profit-taking also contributed. Bharti added that while there could be further short-term corrections, gold could rise again if weak indicators persist and central banks continue to buy gold.

Investors are now waiting for the U.S. non-farm payrolls report for March. However, since most financial markets will be closed for the Good Friday holiday, market reactions are not expected until Monday. Gold is traditionally seen as a hedge against inflation and economic uncertainty, but higher interest rates reduce the appeal of non-yielding gold.

While Cleveland Federal Reserve Bank President Loretta Mester said interest rates should still be above 5%, markets are assuming a 59% probability that the Fed will make no changes to interest rate policy in May, according to CME's FedWatch tool. Spot silver fell 0.1% to $24.96 per ounce, platinum rose 0.9% to $1,005.78, while palladium rose 0.1% to $1,431.47.