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Gold prices fell to $4,470 in early Asian trading on Friday as stalled US-Iran ceasefire talks and the upcoming US May Nonfarm Payrolls (NFP) report weighed on investor sentiment. The precious metal remains volatile amid geopolitical tensions, with traders balancing risks between safety demand and economic data-driven moves. The NFP report, due later in the day, could shift market dynamics by influencing expectations for Fed rate decisions and dollar strength.
For markets, the decline in gold highlights a shift from safe-haven demand to risk-on positioning as geopolitical risks ease temporarily. Traders are closely watching whether the US-Iran talks will reignite or if the NFP data will signal a stronger-than-expected labor market, which could pressure gold further. A weaker-than-expected NFP might boost gold as investors seek alternatives to the dollar.
Looking ahead, the key focus remains on Friday’s NFP data and potential follow-up developments in US-Iran relations. If the ceasefire talks fail, gold could rebound as a hedge against uncertainty. Conversely, a strong NFP report might push gold toward $4,400. Traders should also monitor Fed Chair Powell’s comments for clues on monetary policy.
