Gold prices remained steady during Thursday’s Asian trading session after climbing over the past three days, with investors adopting a cautious stance ahead of the crucial U.S. non-farm payroll report that could signal the Federal Reserve’s next moves.
The precious metal found support amid ongoing concerns about the U.S. fiscal deficit, as House Republicans worked to advance President Trump’s ambitious tax reform package. Uncertainty surrounding upcoming U.S. trade negotiations before the July 9 tariff deadline also helped maintain positive investor sentiment toward gold.
Spot gold hovered around $3,352.75 per ounce, showing little change, while August gold futures edged up slightly by 0.1% to $3,363.70 per ounce as of early Thursday (01:43 ET).
Gold has rallied nearly 2.5% so far this week, recouping losses from the previous session.
US Jobs Report Seen as Key Indicator for Fed Policy
All eyes are on Thursday’s employment data release to better gauge the Federal Reserve’s interest rate outlook. Fed Chair Jerome Powell’s recent remarks signaled a more cautious and potentially dovish approach, with the possibility of a rate cut next month not ruled out.
While markets largely anticipate a rate cut in September, softer inflation figures and early signs of a slowdown in the U.S. economy have raised expectations that easing could come sooner and be more substantial.
Tensions have escalated as President Trump threatened to replace Powell over his push for immediate rate reductions, adding to speculation about a more aggressive shift in monetary policy.
Expectations of lower rates combined with a weakening U.S. dollar have provided a boost to gold prices this week.
Fiscal Deficit Worries and Trade Deal Uncertainty Support Gold
On the political front, efforts to pass Trump’s extensive tax-cut legislation hit roadblocks in the House on Wednesday, with Republican lawmakers struggling to secure enough support ahead of the July 4 deadline.
The bill, which aims to reduce taxes, cut social spending, and boost military and immigration enforcement funding, is expected to increase the national debt by $3.3 trillion.
Meanwhile, the approaching July 9 deadline for key trade deals remains a source of uncertainty, with only three agreements finalized so far — with the UK, China, and Vietnam — and no indication that the deadline will be extended.
Other Metals Show Mixed Movements
The U.S. Dollar Index inched up 0.1% during Asian hours but stayed near its lowest levels since February 2022.
Silver futures traded flat around $36.46 per ounce, while platinum futures slipped 1.2% to $1,417.80.
Copper prices showed mixed trends: London Metal Exchange futures fell 0.2% to just under $10,000 a ton, whereas U.S. copper futures climbed 0.6% to $5.187 per pound.
