Gold prices edged lower on Thursday as investors exercised caution ahead of the U.S. Non-Farm Payroll data, a key indicator expected to provide clarity on the Federal Reserve’s future interest rate decisions.
- Spot gold dipped 0.3% to $3,346.47 per ounce (as of 0211 GMT)
- U.S. gold futures fell 0.1% to $3,357.20 per ounce
According to Kelvin Wong, senior market analyst at OANDA, gold is currently consolidating in the $3,320–$3,360 range as the market adopts a “wait-and-see” stance, awaiting both the Non-Farm Payroll and ISM Services PMI reports later in the day.
Labor Market in Focus
A report from ADP showed that U.S. private payrolls declined by 33,000 in June, the first drop in over two years, signaling possible hiring slowdowns amid ongoing economic uncertainty. Still, layoffs remain low, suggesting underlying labor market strength.
Markets are bracing for the official non-farm payrolls report, which is expected to show the U.S. added 110,000 jobs in June, down from 139,000 in May, according to a Reuters poll.
Trade Developments and Tariff Watch
In trade news, President Donald Trump announced a revised 20% tariff on select Vietnamese goods—lower than initially promised. While Vietnam is the U.S.’ tenth-largest trading partner, analysts believe this move is already priced into the market.
Of greater concern are stalled trade talks with major economies like Japan and ongoing negotiations with India, where both sides are pushing to finalize a tariff-reduction deal before Trump’s self-imposed July 9 deadline. Trump has shown no signs of extending this deadline but remains optimistic about striking a deal with India.
Other Precious Metals Decline
- Silver: down 0.6% to $36.37 per ounce
- Platinum: down 1.5% to $1,397.91
- Palladium: down 1.4% to $1,138.73
Outlook
With gold typically benefiting from economic uncertainty and a low interest rate environment, the upcoming labor data could prove pivotal in determining whether gold resumes an upward trend or remains range-bound in the short term.
