Gold and silver prices retreated in Asian trading Thursday after stronger-than-expected U.S. payrolls data for January dampened expectations of deeper Federal Reserve interest rate cuts. Gold futures fell 0.5% to $5,060.47 per ounce, while silver futures dropped 1.7% to $82.8810 per ounce by 20:32 ET.

January's employment report showed unexpected strength in the labor market, weighing on bets that cooling employment would spur more aggressive Fed rate cuts. Markets now price in a 94.1% probability the Fed will hold rates steady in March and a 78% chance of no change in April. The data also triggered an overnight bounce in the U.S. dollar, which typically weighs on precious metal markets.

The pullback in precious metals came despite persistent haven demand driven by ongoing U.S.-Iran tensions. While both sides claimed progress in weekend nuclear talks, Washington was seen preparing to deploy a second aircraft carrier to the Middle East. President Trump also met with Israeli Prime Minister Benjamin Netanyahu Wednesday, warning Tehran to accept a deal with Washington.