Gold prices dipped slightly in Asian trading on Thursday, easing off recent highs after a strong rally driven by weak U.S. employment data and ongoing trade policy uncertainty, which continued to support safe-haven demand.
Moderate economic data from Asia added to the appeal of gold, while a softer U.S. dollar—amid rising expectations of more Federal Reserve rate cuts this year—also helped keep sentiment positive across metal markets.
By 01:18 ET (05:18 GMT), spot gold edged down 0.1% to $3,368.61 per ounce, while August gold futures declined 0.2% to $3,382.65 per ounce.
Gold Maintains Weekly Gains Amid Economic and Geopolitical Concerns
Despite the modest pullback, gold was still up 2.4% for the week, driven by weaker-than-expected ADP payroll figures for May, which suggested continued cooling in the U.S. labor market. This fueled further speculation that the Fed may lower interest rates again later this year.
The ADP data preceded Friday’s closely watched nonfarm payrolls report, which is also expected to show a slowdown compared to the previous month.
Labor market weakness has contributed to growing concerns about the U.S. economic outlook—especially with President Donald Trump pushing ahead with increased tariffs, despite ongoing legal disputes. Trump doubled duties on steel and aluminum this week, and a deadline for trade partners to present improved offers passed without any new agreements.
Attention now turns to a possible call between Trump and Chinese President Xi Jinping expected later this week, although both governments have yet to confirm any details.
Gold also drew support from heightened geopolitical risks, particularly as escalating military activity between Russia and Ukraine weakened hopes for a U.S.-led ceasefire.
Dollar Weakness Supports Broader Metals Market
While most metal prices dipped slightly on Thursday, they remained higher for the week, buoyed by a weaker U.S. dollar, which has slipped 0.4% so far and is hovering near a six-week low.
Commodities priced in dollars—including precious and industrial metals—benefited from the currency’s weakness.
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Silver futures were flat at $34.640 per ounce, while platinum rose 0.3% to $1,089.65. Both metals have posted weekly gains of 3% to 5%.
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In industrial metals, LME copper futures slipped to $9,631.75 per ton, and U.S. copper futures dipped 0.2% to $4.8890 per pound.
