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Gold prices (XAU/USD) remain stable near $4,685 during the Asian session as traders await critical U.S. employment data scheduled for later in the day. The market is cautious ahead of the April Non-Farm Payrolls report, which will influence Federal Reserve policy decisions and the U.S. dollar's trajectory. A potential U.S.-Iran peace deal also looms as a geopolitical factor that could impact safe-haven demand for gold.
The lack of immediate price movement reflects a balance between inflation-driven gold demand and dollar strength from rising U.S. yields. Traders are closely monitoring the U.S. jobs report for clues about Fed rate hike expectations, which directly affect gold's appeal as an inflation hedge. A weaker-than-expected jobs data could weaken the dollar and push gold higher, while stronger numbers might pressure gold prices.
For Gulf investors, the outcome of the U.S. employment data will be pivotal in determining short-term gold trends. The potential U.S.-Iran deal adds another layer of uncertainty, as geopolitical tensions often drive safe-haven flows into gold. Traders should watch the April NFP release at 13:30 GMT and subsequent Fed statements for directional cues.
