Gold prices remained under pressure during the Asian trading session on Thursday, weighed down by a strong US dollar.
By 1:15 pm AEST (3:15 am GMT) spot gold lost $3.7 or 0.1% to 2,654.9.
Despite the downward pressure, escalating geopolitical tensions in the Middle East continue to provide a level of support for the precious metal after Iran launched over 200 ballistic missiles at Israel earlier in the week, and Israel responded with airstrikes in Lebanon's capital, Beirut, early Thursday.
The greenback also gained momentum, hitting 3-week highs as investors scaled back expectations for a significant Federal Reserve rate cut in November, following a robust US labour market report.
This was fuelled by Wednesday's upbeat US ADP report, which showed private-sector employers added 143,000 jobs in September, surpassing expectations.
Additionally, recent data, including the US Job Openings and Labor Turnover Survey (JOLTS), indicated strength in the labour market, dampening hopes for a more aggressive rate cut by the Federal Reserve.
Market participants remain cautious ahead of key US economic data, particularly the Nonfarm Payrolls report due on Friday, which could provide further insights into the state of the US economy.
Thursday’s US docket also includes Initial Jobless Claims and the ISM Services PMI, while speeches from key Federal Reserve officials may offer additional market cues.
