PRECIOUS-Gold prices dip on profit-taking, US data in focus

By Rahul Paswan

March 6 (Reuters) - Gold prices fell about 1% on Thursday as investors booked profits following a three-day rally, with markets eyeing U.S. jobs data for clues on the Federal Reserve's rate path amid rising global trade tensions.

Spot gold XAU=, which dipped 0.5% to $2,904.51 an ounce as of 1211 GMT, has gained over 10% year-to-date. It hit a record high of $2,956.15 on February 24.

U.S. gold futures GCcv1 also dropped 0.5% to $2,912.10.

"Gold seems to be experiencing profit-taking as investors closely watch tariff developments with prices trading toward $2,900 ahead of the non-farm payrolls report," Lukman Otunuga, senior research analyst at FXTM, said.

Market focus is pinned on an escalating global trade war after the U.S. imposed 25% tariffs on imports from Mexico and Canada on Tuesday along with fresh duties on Chinese goods.

Asian stocks rose as investors held out hope that trade tensions could ease after U.S. President Donald Trump exempted some automakers from tariffs for a month. MKTS/GLOB

Investors turn to gold as a safe haven asset when geopolitical and economic uncertainties loom.

"Unless there is a fresh direction catalyst, the current bearish price action may drag gold lower. Should prices break below the $2,900, this may signal further downside toward $2,880," Otunuga said.

The spotlight is on Friday's non-farm payrolls report, which is expected to show a gain of 160,000 jobs for February, economists polled by Reuters said.

Meanwhile, platinum prices XPT= were flat at $964.68 per ounce.

"We look for platinum to be undersupplied by 500,000 ounces, or 6.4% of demand, in 2025, keeping the metal in a deficit for a third consecutive year," UBS said in a note.

"Our market deficit should further reduce the above-ground inventories below 3 million ounces and help prices to move to USD 1,100/oz this year."

Spot silver XAG= dipped 0.7% to $32.39 an ounce and palladium XPD= shed 0.5% to $937.74.