Gold prices steady as investors await US jobs data for Fed cues

Investing.com-- Gold prices steadied in Asian trade on Thursday after three days of gains, as investors turned cautious ahead of key U.S. payroll data for clues on the Federal Reserve’s policy outlook.

Bullion found support from U.S. fiscal deficit concerns as House Republicans pushed to pass President Trump’s sweeping tax-cut bill, while uncertainty around U.S. trade deals ahead of the July 9 tariff deadline also supported sentiment.

Spot Gold was largely unchanged at $3,352.75 an ounce, while Gold Futures for August gained 0.1% to $3,363.70/oz by 01:43 ET (05:43 GMT). 

Gold has risen nearly 2.5% this week so far, gaining the ground it lost last week.

US jobs report awaited to gauge Fed rate outlook

Investors await the key non-farm payrolls report on Thursday to get further insights on the Fed’s rate path.

Fed Chair Jerome Powell’s recent cautious stance was seen as slightly dovish as he did not rule out the chances of a rate cut next month.

While a September rate cut is largely priced in, recent soft inflation readings and signs of a U.S. economic slowdown have strengthened expectations for earlier and deeper easing.

Adding to this, President Trump’s threat to replace Fed Chair Jerome Powell following his call for immediate rate cuts has further fueled speculation of more aggressive policy action.

Expectations of lower interest rates and a weaker dollar boosted gold prices this week.

US fiscal deficit concerns, tariff uncertainty support bullion

Meanwhile, Trump’s massive tax cut bill was back in the House of Representatives on Wednesday, where Republican lawmakers struggled to pass the measure ahead of the July 4 target.

The bill—aimed at cutting taxes, curbing social programs, and increasing military and immigration enforcement funding—is projected to add $3.3 trillion to the national debt.

Uncertainty over U.S. trade deals ahead of the looming July 9 deadline further supported gold.

With less than a week until the deadline, the U.S. has secured just three trade deals— with the UK, China, and Vietnam. 

Trump has said he had no plans to extend the deadline.

Metal markets subdued; platinum drops

The US Dollar Index ticked up 0.1% in Asian trading hours, but remained near its lowest level since February 2022.

Silver Futures were largely muted at $36.455 per ounce, while Platinum Futures declined 1.2% to $1,417.80.

Meanwhile, benchmark Copper Futures on the London Metal Exchange edged 0.2% lower to $9,989.65 a ton, while U.S. Copper Futures rose 0.6% to $5.187  a pound.