Gold falls as USD strengthens ahead of crucial US jobs report

Gold prices declined 0.8% to $2,315 per ounce as the US dollar gained strength ahead of Friday's pivotal Non-Farm Payrolls report. The dollar index rose 0.4% to 105.20, pressuring gold and other dollar-denominated commodities. Markets are positioning for potentially strong employment data that could reinforce the Federal Reserve's hawkish stance and support further dollar appreciation. EUR/USD fell 0.3% to 1.0780 while AUD/USD dropped 0.5% to 0.6480, reflecting broad-based dollar strength across major pairs. Technical analysis shows gold testing support at $2,310, with resistance at $2,340. A strong jobs report could push gold toward the $2,300 psychological level, while disappointing data might trigger a relief rally. Forex traders should note the inverse correlation between dollar strength and gold prices, which often provides hedging opportunities during periods of economic uncertainty.