Gold prices fell near $4,600 in intraday trading over the weekend following the release of US Initial Jobless Claims data that favored the USD and the easing of tensions between the US and Iran.
At 9 am, gold was at $4,599, down 0.15% since it opened early Friday in Asian trading.
The number of Americans filing new claims for unemployment benefits unexpectedly fell to 198,000 for the week ended January 10, the US Labor Department said on Thursday.
This was lower than market expectations of 215,000 and lower than the previous week's reading of 207,000, revised down from 208,000.
The stronger labor data could delay expectations of Fed monetary policy easing in the first half of this year. The situation supported the strengthening of the US dollar index to a multi-week high, thus putting pressure on gold prices.
At the same time, the easing of geopolitical tensions between the United States and Iran also reduced demand for safe-haven assets. Gold usually finds support when geopolitical and economic uncertainty increases.
US President Donald Trump stated that Iran does not plan to execute detained anti-government protesters. However, he warned that strong action will be taken if the killings continue.
The market is closely monitoring the latest developments regarding civil unrest in Iran. Any resurgence of tensions has the potential to support gold prices in the near term.
