Gold fell for a second consecutive session on Thursday, pressured by a resilient US dollar. Stronger-than-expected ISM Services data reinforced the view of robust activity in the US services sector, influencing interest rate expectations and weighing on bullion.

However, the downside appears limited. Recent JOLTS and ADP weekly employment figures suggest a potentially softening labor market, indicating that employment momentum may be weakening. Market attention now turns to Friday’s NFP data for further insight into US labor conditions.

Geopolitical risks continue to underpin gold demand. Tensions in Latin America remain a source of uncertainty, while renewed focus on Greenland where President Donald Trump has reiterated his interest in controlling the mineral-rich Arctic island—has prompted bipartisan concern in the US Senate and coordinated pushback from European leaders. In Eastern Europe, ongoing tensions maintain an elevated geopolitical risk premium.

Meanwhile, central bank gold purchases may continue to support prices. China recently reported an increase in its gold reserves for the 14th consecutive month, reinforcing a bullish outlook for the metal.