Gold Prices Retreat as Strong US Jobs Data Dampens March Fed Rate Cut Hopes

Gold (XAU/USD) prices edged lower during the Asian session on Thursday, retreating from a two-week high. The decline follows the release of robust US Non-Farm Payrolls (NFP) data, which signaled continued resilience in the labor market. This strong economic performance has led markets to temper their expectations for a Federal Reserve interest rate cut as early as March. Currently, the precious metal is trading down by less than 0.50%, though it remains positioned above key technical support levels. The strengthening US Dollar and rising Treasury yields, fueled by the jobs report, continue to exert downward pressure on non-yielding assets like gold. Investors are now recalibrating their portfolios as the prospect of a 'higher-for-longer' interest rate environment gains traction.