Gold Prices Hover Near Two-Week Low Ahead of NFP Release

Market Overview

Following the latest U.S. initial jobless claims data, the 2-year Treasury yield dropped to a three-week low before rebounding by over 10 basis points after the release of the ISM Manufacturing PMI. Meanwhile, the U.S. Dollar Index extended its rally for a third straight session, reclaiming the 100 level and reaching its highest point in nearly three weeks. In response, gold prices pulled back to a two-week low but have since stabilized, trading around $3,230 per ounce. Goldman Sachs noted that ahead of the May Day holiday, Chinese traders dumped nearly 1 million ounces of gold, effectively reversing last weeks accumulation. As a result, onshore gold holdings have declined by 5% from their historical peak.

Hot Topics to Watch

● Crude Oil Surges 2% as U.S. Imposes Iran Sanctions

On Thursday, WTI crude rose by 2% to $59.42 per barrel, while Brent crude climbed to $62.32 per barrel. President Trump announced that all purchases of Iranian oil must cease immediately, warning that buyers would face secondary sanctions regardless of the volume purchased. Meanwhile, Omans Foreign Ministry confirmed that the fourth round of indirect U.S.-Iran negotiations, initially scheduled for May 3, has been postponed.

● Bank of Japan Holds Steady Amid Rising Uncertainty

The Bank of Japan unanimously voted to keep its policy unchanged, citing persistent uncertainty around global trade policy and continued weakness in exports and production. Officials also expressed concern over domestic inflationary pressures driven by rising food prices. Markets are closely monitoring Governor Kazuo Uedas upcoming press conference for any forward guidance on rate hikes. Following the decision, the yen depreciated further, with USD/JPY climbing past 145.5.

Key Data to Watch (GMT+8)

• 20:30 – U.S. April Unemployment Rate, Nonfarm Payrolls (thousands), Average Hourly Earnings (YoY/MoM)

• 22:00 – U.S. March Factory Orders (MoM)