Gold edges higher as soft US data lifts safe-haven demand
[BENGALURU] Gold prices nudged higher on Thursday (Jun 5), as weaker-than-expected US economic data spurred demand for safe-haven assets, while market participants also assessed persistent global economic and political uncertainties.
Spot gold was up 0.1 per cent at US$3,377.79 an ounce, as at 0007 GMT. US gold futures also climbed 0.1 per cent to US$3,401.20.
The ADP National Employment Report showed that US private employers added in May the fewest number of workers in more than two years, with investors awaiting Friday's nonfarm payrolls report for further clues on the labour market.
The US services sector contracted in May for the first time in nearly a year, as businesses faced higher input costs amid growing fears of stagflation.
Gold gained support after the Federal Reserve reported a slowdown in US economic activity, citing rising costs and prices driven by increased tariff rates since the last policy meeting.
Bullion found additional momentum after US President Donald Trump urged Fed chair Jerome Powell on Wednesday to cut interest rates, pointing to slower job growth highlighted in the latest ADP employment report.
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Trump's doubling of tariffs on steel and aluminium imports took effect, with his administration seeking 'best offers' from trade partners to avoid further levies slated for July.
Trump described Chinese President Xi Jinping as 'extremely hard to make a deal with', highlighting tensions ahead of a long-awaited call between the two leaders this week.
Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment.
Elsewhere, spot silver gained 1.3 per cent to US$34.50 an ounce, platinum rose 0.6 per cent to US$1,090.81 and palladium shed 0.2 per cent to US$998.70. REUTERS
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