Gold prices ease ahead of US data as investors weigh Fed rate stance
Spot gold was down 0.2% at $3,330.68 per ounce, as of 0217 GMT, while U.S. gold futures fell 0.3% to $3,340.60.
The U.S. dollar index (.DXY), opens new tab weakened to its lowest point in more than three years, making bullion more affordable for holders of other currencies.
"Gold prices are consolidating after posting the strongest gains in two weeks. The overall trend bias continues to favour the upside for now," said Ilya Spivak, head of global macro at Tastylive, adding Fed policy expectations are taking center stage at the moment.
Powell reiterated that the U.S. central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates, again setting aside U.S. President Donald Trump's demands for immediate and deep rate cuts.
U.S. job openings unexpectedly increased in May, but a decline in hiring added to signs that the labour market had shifted into lower gear amid uncertainty over the Trump administration's tariffs on imports.
Investors are now awaiting U.S. ADP employment data, due later in the day, and nonfarm payroll figures on Thursday for further insights into labour market conditions.
"The biggest risk for gold is an unexpectedly strong (NFP)result, but that seems rather unlikely to happen," Spivak said.
Meanwhile, U.S. Senate Republicans narrowly passed Trump's tax-and-spending bill on Tuesday, a package cutting taxes, reducing social safety net programmes, and boosting military spending, while adding $3.3 trillion to the national debt.
Trump expressed optimism on Tuesday about a potential trade deal with India but was skeptical about reaching a similar agreement with Japan. He added that he was not considering an extension of the July 9 deadline for countries to negotiate trade deals.
Spot silver edged down 0.1% to $36.01 per ounce, platinum fell 0.4% to $1,344.91, while palladium gained 0.4% to $1,104.92.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
28 minutes ago
- Daily Mail
Shock job report shows worst employment decline in years sending markets into the negative
Private sector hiring shrunk dramatically last month in a worrying sign for the the US economy. Private payrolls shed 33,000 jobs in June when analysts had conversely expected them to add 100,000, according to the latest ADP figures. The worrying data suggests the US economy could be a lot less resilient than investors have been hoping. The S&P 500 and Nasdaq indexes turned negative in pre-market trading following the release of the report on Wednesday morning. 'Though layoffs continue to be rare, a hesitancy to hire and a reluctance to replace departing workers led to job losses last month,' Nela Richardson, ADP's chief economist said in a statement.
Reuters
28 minutes ago
- Reuters
US private payrolls unexpectedly decrease in June; layoffs remain low
WASHINGTON, July 2 (Reuters) - U.S. private payrolls unexpectedly fell in June and job gains in the prior month were smaller than initially thought, the ADP National Employment Report showed on Wednesday. Private payrolls dropped by 33,000 jobs last month after a downwardly revised 29,000 increase in May. Economists polled by Reuters had forecast private employment increasing 95,000 following a previously reported gain of 37,000 in May. The ADP report, jointly developed with the Stanford Digital Economy Lab, was published ahead of the more comprehensive employment report for June due to be released on Thursday by the Labor Department's Bureau of Labor Statistics. There is no correlation between the ADP and BLS employment reports. The BLS' employment report is being published a day early because of the Independence Day holiday on Friday. Job growth has ebbed as businesses grapple with trade policy uncertainty, but companies have not yet resorted to widespread layoffs, keeping the labor market anchored. A separate report from global outplacement firm Challenger, Gray & Christmas showed job cuts announced by U.S.-based employers dropped 49% to 47,999 in June. Planned layoffs totaled 247,256 in the second quarter, down 50% from the January-March quarter. Hiring plans, however, dropped to 3,191 last month from 9,683 in May. Sluggish hiring was also evident in the government's Job Openings and Labor Turnover Survey, or JOLTS report on Tuesday, which showed a 112,000 decline in hires to 5.503 million in May. The JOLTS report also showed there were 1.07 job openings for every unemployed person in May, up from 1.03 in April. "Without a strong economic driver, hiring may remain measured through the rest of the year," said Andrew Challenger, senior vice president at Challenger, Gray & Christmas. Economists polled by Reuters expect the government's employment report to show private payrolls increased by 105,000 in June after rising 140,000 in May. Overall nonfarm payrolls are estimated to have advanced by 110,000 jobs after gaining 139,000 in May. The unemployment rate is forecast climbing to 4.3% from 4.2% in May.
Reuters
29 minutes ago
- Reuters
Wall St set for muted start after ADP shock; focus on trade, payrolls data
July 2 (Reuters) - U.S. stocks were on track for a subdued start on Wednesday as surprisingly weak U.S. private jobs data raised concerns about the labor market, while investors closely monitored trade talks ahead of President Donald Trump's July 9 tariff deadline. The ADP National Employment Report showed U.S. private payrolls fell unexpectedly in June and job gains in the prior month were smaller than initially thought. Investors quickly increased their bets of a rate cut by the U.S. Federal Reserve in July to 27.4%, from about 20% prior to the report, according to LSEG data. "I take it as a mixed bag. On one hand, the wage is still strong, which is terribly important to the U.S. economy. On the downside, if this isn't seasonality, this is the beginning of a long-term trend in white collar jobs that'll spill over into the total labor market," said Ross Mayfield, investment strategist at Baird. "It would be very damaging for the overall economy and obviously make the Federal Reserve react despite their concerns about tariffs causing inflation." The Nasdaq (.IXIC), opens new tab and the S&P 500 (.SPX), opens new tab closed lower in the previous session, retreating from record highs as tech stocks were pressured and Treasury yields climbed after data showed stronger-than-expected job openings in May. Focus now turns to the more comprehensive non-farm payrolls report, scheduled for release on Thursday - a day earlier than usual, as markets are closed on Friday for Independence Day. The reading is expected to show U.S. job growth cooled in June and the unemployment rate ticked up to 4.3%, according to a Reuters poll of economists. On trade, Trump said on Tuesday he was not thinking of extending the July 9 deadline for imposing tariffs and expressed doubts that an agreement could be reached with Japan, although he said he expected a deal with India. The European Union's trade chief is expected to hold talks this week with peers in Washington. By 8:52 a.m. ET (1252 GMT), S&P 500 e-minis were down 10.75 points, or 0.17%, Nasdaq 100 e-minis dropped 91.75 points, or 0.4%, and Dow e-minis slipped 28 points, or 0.06%. The blue-chip Dow (.DJI), opens new tab closed 1.3% below its record high touched in December. U.S. Senate Republicans passed Trump's massive tax-and-spending bill on Tuesday by the narrowest of margins, advancing a package that would slash taxes, reduce social safety net programs and boost military and immigration enforcement spending, while adding $3.3 trillion to the national debt. The legislation now heads to the House of Representatives for possible final approval, although a handful of Republicans have already opposed some of the Senate provisions. Among single stocks, Centene (CNC.N), opens new tab tumbled 31.2% premarket after the health insurer said it had withdrawn its 2025 earnings forecast after data showed a significant drop in expected revenue from its marketplace health insurance plans. Shares of peers including Elevance Health (ELV.N), opens new tab, Molina Healthcare (MOH.N), opens new tab and UnitedHealth (UNH.N), opens new tab dipped in the range of 2.4% and 12.8%. U.S. banking giants including JPMorgan Chase (JPM.N), opens new tab, Bank of America (BAC.N), opens new tab and Wells Fargo (WFC.N), opens new tab edged higher following announcements that they planned to raise third-quarter dividends after clearing the Fed's annual health check last week. Verint Systems (VRNT.O), opens new tab soared 9.4% after Bloomberg News reported buyout firm Thoma Bravo was in talks to buy the call-center software maker.
