Gold Price Holds Above $4,000 as Fed Rate Hike Expectations and U.S. Jobs Data Weigh on Market

Gold prices steadied during early Asian trading on Thursday as investors awaited the release of the closely watched U.S. nonfarm payrolls report for fresh clues on the Federal Reserve’s next interest rate move. Despite a modest rebound, the precious metal remained near its lowest levels of the year after suffering its biggest quarterly decline in 13 years during the June quarter.

Spot gold gained 0.3% to $4,043.23 an ounce, while gold futures slipped 0.7% to $4,054.67 per ounce. The recovery came after bullion briefly fell below the key $4,000 level on Wednesday, but upside momentum remained limited by expectations that U.S. interest rates could stay higher for longer.

Market sentiment was pressured after Federal Reserve Chair Kevin Warsh reaffirmed the central bank’s commitment to bringing inflation back to its 2% target. His remarks reinforced expectations that the Fed will maintain a firm stance on monetary policy rather than pivot toward easing, reducing the appeal of non-yielding assets such as gold.

Traders are now increasingly pricing in at least one Federal Reserve interest rate hike in 2026 as inflation concerns remain persistent. Although energy prices have eased recently, inflationary pressures continue to linger, with rising semiconductor and chip prices emerging as another potential source of higher consumer costs.

Attention now turns to the June U.S. nonfarm payrolls report, due later on Thursday. The employment data is expected to play a key role in shaping the Fed’s policy outlook, as the central bank continues to balance inflation risks with labor market strength. A stronger-than-expected jobs report could reinforce expectations for tighter monetary policy, while weaker employment figures may ease pressure on gold.

Other precious metals also stabilized after posting sharp losses during the June quarter. Spot silver edged up 0.2% to $59.26 an ounce, while spot platinum added 0.1% to $1,582.94 an ounce as investors remained cautious ahead of the pivotal U.S. economic data.