Gold prices held steady in Asian trading on Thursday, pausing after three consecutive sessions of gains, as investors adopted a cautious stance ahead of the closely watched U.S. non-farm payrolls report, which could influence expectations for future Federal Reserve policy.
The yellow metal found support from growing concerns over the U.S. fiscal deficit, as Republican lawmakers in the House worked to advance President Trump’s broad tax-cut legislation. Additional support came from uncertainty surrounding U.S. trade agreements ahead of the looming July 9 tariff deadline.
Spot gold was little changed at $3,352.75 per ounce, while August gold futures edged up 0.1% to $3,363.70 per ounce by 01:43 ET (05:43 GMT). Gold prices have climbed nearly 2.5% so far this week, recouping losses from the previous week.
All Eyes on U.S. Jobs Report and Fed Policy Outlook
Market participants are now focused on Thursday’s U.S. employment report, looking for fresh signals on the Fed’s monetary policy direction. Recent comments by Fed Chair Jerome Powell were interpreted as mildly dovish, as he did not rule out the possibility of a rate cut as early as next month.
While a September rate cut is already widely anticipated, recent data pointing to sluggish inflation and signs of a slowing economy have led to speculation that easing could come sooner and be more substantial than previously expected.
Further stirring market expectations, President Trump’s public criticism of Powell—and his threat to replace the Fed Chair unless rate cuts are implemented—has fueled bets on more aggressive monetary stimulus.
Expectations of lower interest rates and a weaker dollar have been key drivers behind gold’s rise this week.
Fiscal and Trade Uncertainty Lend Additional Support
Back in Washington, Trump’s tax-cut proposal returned to the House of Representatives on Wednesday, where Republican lawmakers faced challenges in pushing it through before the self-imposed July 4 deadline.
The bill aims to slash taxes, reduce funding for social programs, and increase spending on defense and immigration enforcement. However, it is estimated to add $3.3 trillion to the national debt, raising fiscal concerns that are also benefiting gold as a safe-haven asset.
Meanwhile, with less than a week to go before tariffs are set to take effect, the U.S. has finalized only three trade agreements—with China, the UK, and Vietnam—and President Trump has indicated he has no intention of extending the deadline.
Metal Markets Mixed; Platinum Falls
In broader metals trading, the U.S. Dollar Index inched up 0.1% during Asian hours, though it remained close to its lowest level since February 2022.
- Silver futures were largely unchanged at $36.455 per ounce.
- Platinum futures declined by 1.2% to $1,417.80.
- On the London Metal Exchange, benchmark copper futures slipped 0.2% to $9,989.65 per ton, while U.S. copper futures rose 0.6% to $5.187 per pound.
