Gold Prices Steady as Investors Await US Jobs Data and Fed Clues

Gold prices held firm in Asian trading on Thursday following a three-day rally, as investors adopted a cautious stance ahead of the key U.S. non-farm payroll report, which could offer fresh signals on the Federal Reserve’s interest rate direction.

Spot gold hovered around $3,352.75 per ounce, while August gold futures inched up 0.1% to $3,363.70 by early morning. The precious metal has gained nearly 2.5% this week, rebounding from last week’s decline, driven by growing expectations of Fed rate cuts and mounting U.S. fiscal concerns.

Market focus remains on Thursday’s jobs report, which may influence the Fed’s policy stance. Fed Chair Jerome Powell’s recent comments were interpreted as dovish, leaving the door open for a potential rate cut in September. Weak inflation data and signs of an economic slowdown have further fueled speculation of earlier and more aggressive easing. President Trump’s renewed criticism of Powell and threats to replace him added to expectations of accommodative monetary policy, weakening the dollar and supporting gold.

Bullion also drew strength from fiscal worries, as the House resumed debate over Trump’s proposed tax-cut bill, projected to raise the U.S. debt by $3.3 trillion. Simultaneously, investor uncertainty over unresolved U.S. trade negotiations—particularly with the July 9 tariff deadline approaching—boosted safe-haven demand.

Despite a 0.1% uptick in the U.S. Dollar Index, it remained near its lowest since February 2022. Other metals saw mixed action: silver traded flat at $36.455 per ounce, platinum fell 1.2% to $1,417.80, and copper futures slipped 0.2% to $9,989.65 a ton in London, though U.S. copper gained 0.6% to $5.187 a pound.