Gold dips on stronger dollar, rising oil pressure markets

April 6, 2026 (MLN):  Gold prices dipped on Monday, on a stronger U.S. dollar, as ongoing Middle East tensions and robust U.S. employment data weighed on investor expectations for Federal Reserve interest rate cuts.

Currently, spot gold is down 0.35% to $4,658.64 an ounce as of [9:28 am] PST, according to data reported by Mettis Global.

U.S. labor market data released Friday showed nonfarm payrolls rising by 178,000 in March, the largest gain since December 2024 while the unemployment rate dropped to 4.3%, according to Rueters.

The report boosted the U.S. dollar and 10-year Treasury yields, adding pressure to gold, which is priced in dollars.

Energy markets were also unsettled as Brent crude climbed amid disruptions to global supplies caused by the escalating U.S.-Israeli conflict with Iran. U.S. President Donald Trump warned of severe consequences if Iran did not reach a deal and reopen the Strait of Hormuz by Tuesday, though recent intelligence assessments indicate Iran is unlikely to comply soon.

Higher crude prices have heightened inflation concerns, a factor that typically supports gold. However, elevated interest rates reduce the appeal of non-yielding assets like bullion, limiting upside for precious metals.

Market participants have largely dismissed the possibility of Federal Reserve rate cuts this year, reversing expectations from before the Iran conflict, when analysts had predicted two potential reductions in 2026.

Other precious metals also saw mixed movements: spot silver slipped 0.9% to $72.34 per ounce, platinum declined 0.6% to $1,977.29, while palladium inched up 0.3% to $1,500.25.

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