Gold Rises on Weak US Data
Gold prices continued to climb, hitting a near one-month high of $3,380 per ounce, as a fresh wave of weak US economic data and a dovish Federal Reserve outlook boosted safe-haven demand ahead of Friday’s nonfarm payroll report.
Weekly jobless claims rose to 247K in the final week of May—the highest level since early October 2024 and above market expectations of 235K. Meanwhile, productivity in Q1 fell more sharply than initially estimated, while the trade deficit narrowed, primarily due to a decline in imports.
Earlier in the week, the ADP report revealed only 37K private-sector jobs were added in May, marking the weakest monthly gain since March 2023. Meanwhile, the ISM Services PMI indicated the sector’s first contraction in nearly a year.
Beyond the economic data, escalating geopolitical and trade tensions are heightening market uncertainty. The US recently doubled tariffs on steel and aluminum imports to 50%, raising concerns about renewed trade conflicts with key global partners.
Source: Trading Economics
