(Kitco News) - Robust job growth last month is expected to put pressure on gold prices when markets open Sunday evening in Asian trading, according to some market analysts.
U.S. nonfarm payrolls rose by 178,000 in March, the Bureau of Labor Statistics reported on Friday. This figure significantly beat consensus forecasts, as economists had anticipated job gains of around 65,000.
Meanwhile, the unemployment rate dropped to 4.3%, down from 4.4% in February. Economists had been forecasting an unchanged reading.
The gold market is closed for the Easter long weekend, so there has been no immediate market reaction to the better-than-expected economic data. However, some analysts have said that healthy labor market data will give the Federal Reserve some room to maintain its neutral monetary policy stance as it deals with growing inflation fears.
Gold has been struggling recently, as the war in Iran is creating global supply chain issues, particularly in energy markets, which have pushed oil prices above $100 a barrel. The global inflation threat has caused central banks around the world to halt their easing cycles.
Analysts have said that for gold to regain its safe-haven luster, investors need to start seeing weak economic data, as this would raise stagflation fears and force central banks to cut rates to support their domestic economies, even if inflation remains elevated.
