Gold Holds Decline After US Jobs Data Deters Demand for Havens
Gold steadied after falling in the previous session due to an unexpected increase in US job openings, which buoyed risk-on sentiment and helped strengthen the dollar.
The precious metal was trading near $3,360 an ounce, following a 0.8% decline on Tuesday. The rise in job openings encouraged investors that the US economy remains resilient despite threats from President Donald Trump’s tariff agenda.
Bullion is up around 28% this year, less than $200 below an all-time high reached in April. It’s been bolstered by haven demand as investors have exited assets exposed to an expanding trade war. Central banks are also a major driving force, with their buying spree expected to continue amid geopolitical tensions and concerns about overexposure to the dollar.
There’s little sign trade tensions will soon ease. On Tuesday, Trump signed a directive raising steel and aluminum tariffs to 50% from 25%. Meanwhile, China this week claimed the US “seriously undermined” a recent truce, and the European Union warned of fresh countermeasures if the US follows through on tariff threats.
Spot gold traded at $3,356.26 an ounce as of 8:25 a.m. in Singapore. The Bloomberg Dollar Spot Index eased 0.1%, following its 0.4% gain in the previous session. Silver gained, while platinum and palladium were little changed.
Looking ahead, US job indicators including a report on May employment are scheduled to be released on Friday, which may help steer the Federal Reserve’s monetary policy. Lower rates are generally positive for non-interest paying bullion.
Source: Bloomberg
