Gold Prices Hold Weekly Gains Despite Minor Dip as Trade, Rate Uncertainty Lingers

Gold prices eased slightly in Asian trade on Thursday, but the metal remained on track for a solid weekly gain as economic and geopolitical uncertainty continued to drive demand for safe-haven assets.

A Minor Pullback Amid Strong Week

• Spot gold fell 0.1% to $3,368.61 an ounce

• Gold futures for August dipped 0.2% to $3,382.65/oz by early Thursday trading

Despite the modest retreat, gold is still up 2.4% this week, buoyed by weakening U.S. labor data and fading confidence in the global economic outlook.

Weak U.S. Jobs Data Boosts Rate Cut Bets

Gold's recent rally came on the heels of softer-than-expected ADP payrolls data, which pointed to a sustained cooling of the U.S. job market. Markets now expect the Federal Reserve to cut interest rates further this year, a move that tends to favor non-yielding assets like gold.

Attention is now turning to Friday's nonfarm payrolls report, where a sharp drop from the previous month could reinforce the narrative of an economic slowdown and further underpin bullion prices.

Tariff Tensions Keep Gold Well-Bid

Risk sentiment has also been hit by U.S. President Donald Trump's renewed tariff push. Earlier this week, the administration:

• Doubled tariffs on steel and aluminum to 50%

• Set a Wednesday deadline for new trade offers, which passed without resolution

Uncertainty over a lasting trade deal, combined with global growth concerns, has kept investors cautious and gold relatively well-supported.

Dollar Weakness Adds Tailwind

The U.S. dollar softened amid dovish Fed expectations, further helping gold. A weaker dollar generally makes commodities priced in greenbacks more attractive to non-U.S. buyers, supporting broader metal prices.

Track the Trends

For a closer look at real-time market developments:

• Use the Commodities API to monitor intraday price movements for gold and other key metals

• Explore the Economics Calendar API for updates on U.S. labor, inflation, and trade data that directly influence gold market sentiment

Final Word

While gold prices edged lower Thursday, the backdrop remains favorable for the yellow metal. With Fed rate cuts on the table and global trade still in flux, gold is poised to retain its role as a strategic hedge for investors navigating an uncertain economic landscape.