Gold prices held firm during Thursday’s Asian session, maintaining gains accumulated over the past three days as investors adopt a cautious stance ahead of the highly anticipated U.S. non-farm payroll report, a key indicator for the Federal Reserve’s next policy decisions.
The precious metal found support amid ongoing worries about the growing U.S. fiscal deficit, while political developments kept investors attentive. House Republicans continue efforts to push forward President Trump’s ambitious tax reform plan, and uncertainty around upcoming trade negotiations ahead of the July 9 tariff deadline helped sustain gold’s appeal as a safe haven.
Spot gold remained steady near $3,352.75 per ounce, with August futures inching up 0.1% to $3,363.70 early Thursday (01:43 ET). The metal has gained roughly 2.5% this week, recovering some of the previous session’s losses.
U.S. Jobs Data Crucial for Fed’s Rate Outlook
All eyes are on the U.S. employment report due Thursday, which will provide critical insight into the Federal Reserve’s interest rate path. Fed Chair Jerome Powell’s recent cautious statements have raised expectations of a potential rate cut next month, despite markets broadly pricing in easing in September.
Signs of slowing economic growth and softer inflation data have increased speculation that the Fed may act sooner and more decisively than expected. Meanwhile, tensions between President Trump and Powell—sparked by Trump’s threat to replace the Fed chief over his rate policy stance—have added to market volatility.
Expectations of lower interest rates combined with a weaker U.S. dollar have supported gold prices this week.
Fiscal Deficit Concerns and Trade Talks Add to Market Uncertainty
On the political front, efforts to pass Trump’s comprehensive tax-cut legislation encountered hurdles in the House on Wednesday, with Republican lawmakers struggling to rally sufficient support ahead of the July 4 deadline. The bill, aimed at reducing taxes, cutting social spending, and increasing military and immigration funding, is projected to add $3.3 trillion to the national debt.
Meanwhile, the fast-approaching July 9 deadline for key trade agreements continues to weigh on market sentiment. So far, only deals with the UK, China, and Vietnam have been finalized, with no clear sign that the tariff deadline will be postponed.
Other Metals See Varied Action
The U.S. Dollar Index edged up 0.1% during Asian trading but remained near its lowest level since February 2022.
Silver futures held steady around $36.46 per ounce, while platinum slipped 1.2% to $1,417.80 per ounce.
Copper prices showed mixed results, with London Metal Exchange futures down 0.2% to just under $10,000 a ton, while U.S. copper futures gained 0.6%, reaching $5.187 per pound.