Gold slips below $5,000, silver slumps after blowout U.S. jobs report

Gold and silver prices fell on Thursday, amid a larger risk-off move in equities and a move towards bonds after stronger-than-expected U.S. payrolls data.

Traders also digested renewed trade uncertainty, while looking ahead to a key inflation reading due Friday.  

At 13:33 ET (18:33 GMT), Spot gold fell 2.9% to $4,932.16/oz and gold futures for April fell 2.8% to $4,953.66/oz. 

Spot silver fell 9.6% to $76.26/oz, while spot platinum fell 5.6% to $2,025.70/oz. 

Precious metal prices have largely regained or close to recouped their losses from a historic rout at the end of January, amid persistent weakness in the dollar and solid haven demand due to tensions between Iran and the U.S.

"Moves like this usually look scarier than they really are. After a historic run, a sharp correction is normal. This appears driven more by leverage getting flushed out and shifting Fed expectations than any real change in the long-term case for metals," Max Baecker, president of American Hartford Gold, told Investing.com.

"Even with today’s drop, gold and silver remain well above last year’s levels, and the drivers behind this bull market like debt, inflation risk, and central-bank buying haven’t gone away. And historically, periods like this often set the stage for the next leg higher, especially if the market shifts toward rate cuts or geopolitical tensions escalate," he said.

"As we tell clients, Wall Street may be getting forced out by margin calls, but long-term savers are being invited in at better prices. Short-term traders chase ticks; serious investors focus on protection," Baecker added.

Global trade uncertainty

U.S. President Trump and Chinese leader Xi Jinping could extend their trade truce by as much as a year when they meet in Beijing in April, the South China Morning Post reported Thursday. The summit is set to be anchored around short-term economic wins, including fresh Chinese purchase commitments, the Morning Post report said.

Additionally, Trump is privately musing about exiting the North American trade pact, injecting further uncertainty about the deal’s future into pivotal renegotiations involving the U.S., Canada and Mexico, Bloomberg News reported on Wednesday, citing people familiar with the matter.

The US-Mexico-Canada Agreement is set for a mandatory review before a possible extension on July 1.

Gold dips as dollar bounces on strong nonfarm payrolls

Gold had slipped lower after U.S. nonfarm payrolls data, released on Wednesday, read stronger than expected for January.

The print showed unexpected strength in the labor market, and weighed on bets that cooling employment will spur more interest rate cuts by the Fed.

Markets are now pricing in a 94.1% chance the Fed will leave rates unchanged in March, and a 78% chance for a similar trend in April, the CME Fedwatch tool showed.