Gold prices took an unexpected turn, shedding early gains and falling in Asian trade on Thursday. This shift was primarily attributed to a stronger dollar, as traders anticipated significant central bank meetings and crucial U.S. labor data. The cooling haven demand, following the confirmation of talks between the U.S. and Iran, also contributed to the downward pressure on gold prices. By 21:17 ET (02:17 GMT), gold prices had dropped 1.1% to $4,912.26 per ounce, while April prices fell 0.4% to $4,929.25/oz. This decline followed a previous rebound that saw spot prices reach $5,092.31/oz on Wednesday, before they eventually fell below the $5,000/oz mark. The losses in gold were partly due to the confirmation of talks between Iran and the U.S., which helped ease fears of an immediate military escalation in the Middle East. Additionally, metal prices were under pressure from a stronger dollar, as traders shifted their focus to the greenback in anticipation of interest rate decisions by major central banks, including the Federal Reserve and the European Central Bank, both set for Thursday. The dollar's strength was further bolstered by anticipated key U.S. data due this Friday, with the print likely influencing the interest rate outlook. The greenback's gains extended from last week, following President Donald Trump's nomination of Kevin Warsh as the next Federal Reserve chairman. Warsh's nomination is seen as a less dovish choice, potentially keeping monetary policy tight even as interest rates fall. Other precious metals also experienced retreats after a brief rebound earlier in the week. Silver prices slid 6.9% to $82.3130/oz after a nearly 6% rally in the previous session, mirroring gold's losses. Silver's dual role as an industrial and precious metal has contributed to its outperformance in recent months, but it still faced steep losses over the past week, attributed to a mix of profit-taking and dollar strength. Silver prices fell 3% to $2,167.59/oz, while benchmark industrial metals on the London Metal Exchange dropped 0.6% to $12,986.0 per tonne.
