Gold prices rose marginally on Thursday as investors remained cautious ahead of the release of the U.S. payroll data later in the day, which is expected to provide insights into the Federal Reserve’s policy trajectory.
In Dubai, gold rates rose, with 24-carat gold rising AED1.25 to AED403.75 and 22-carat gold gaining AED1.5 to AED374. Additionally, 21-carat gold rose AED1.25 to AED358.25, and 18-carat gold was up AED1.25 to AED307.25.
Globally, spot gold gained 0.04 percent to $3,349.97 per ounce, as of 4:26 GMT, while U.S. gold futures edged up 0.01 percent to $3,360.10.
The dollar index was up 0.06 percent to 96.84, making gold prices more expensive for other currency holders.
Market in wait-and-see mode ahead of U.S. jobs data
Gold prices seem to be consolidating within the $3,320 to $3,360 range, said analysts, with the market adopting a wait-and-see approach ahead of U.S. Non-Farm Payroll and ISM Services PMI data.
Data released by ADP showed U.S. private payrolls dropped by 33,000 jobs in June, marking the first decline in more than two years, as economic uncertainty impacted hiring. Meanwhile, low layoffs continued to support the labor market.
As gold prices hold largely steady, investors are now awaiting the non-farm payrolls report on Thursday, which is expected to show an addition of 110,000 jobs in June, down from 139,000 in May, according to a Reuters poll.
This week, Trump’s multitrillion-dollar tax bill received Senate approval. “The tax bill, which is expected to widen the deficit by $3.3 trillion over the next decade, now awaits voting in the House. If endorsed, it would enhance the appeal of gold as a haven, especially with investors reconsidering their U.S. asset exposure in response to Trump’s trade and economic policies,” said Vijay Valecha, chief investment officer, Century Financial.
Vietnam and U.S. reach trade deal ahead of July 9 deadline
In a major trade development, the U.S. will impose a lower-than-promised 20 percent tariff on goods from Vietnam, President Donald Trump announced on Wednesday. The Southeast Asian nation is the U.S.’ tenth-largest trading partner.
Additionally, the dollar hit a 3-year low, which also supports the bullish momentum of gold prices in the previous session. Meanwhile, investors are monitoring U.S. trade negotiations, where Trump is sticking by his July 9 deadline to raise tariffs.
“Although it has not been able to capitalize on its two-month up trend, the bigger picture is still gold-friendly,” added Valecha.
The U.S. and India negotiators pushed to finalize a tariff-reducing deal ahead of Trump’s deadline. Trump has indicated no signs of extending the negotiation deadline despite stalled discussions with Japan, another key trade partner, but expressed optimism about an India deal.
Non-yielding gold tends to perform well during economic uncertainty and in a low-interest-rate environment.
Read: Oil prices fall 0.71 percent to $68.62 on concerns over weak U.S. demand
Other precious metals
As gold prices remained largely unchanged, the precious metals market was down. Spot silver fell 0.67 percent to $36.34, while platinum dipped 1.49 percent to $1,397.63. In addition, palladium declined 1.14 percent to $1,141.76 and copper dipped 0.08 percent to $5.15.
