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Time of India
4 days ago
- Business
- Time of India
Gold price prediction: Will gold stay flat as U.S. jobs data battles trade war fears ahead of Fed signals?
Gold prices steady as strong U.S. jobs data offsets safe-haven demand amid rising U.S.-China trade tensions- Gold prices held their ground on Wednesday, June 4, as fresh U.S. labor data showed unexpected strength, balancing out investor demand for safe-haven assets like gold due to ongoing trade tensions between the U.S. and China. As of 11:45 GMT, spot gold stood firm at $3,349.19 per ounce, while U.S. gold futures were unchanged at $3,373.10. The job market gave investors some relief, yet growing global concerns—especially sharp words and tariff moves from President Donald Trump—kept gold from falling further. "U.S. labor data gave markets a bit of relief yesterday, causing a small dip in gold prices. However, tensions between the U.S. and China are still keeping risks high and gold prices supported,' said Zain Vawda, market analyst at MarketPulse by OANDA. What's holding gold steady despite global uncertainty? While many expected gold to climb on geopolitical stress, stronger U.S. job numbers provided a counterweight. According to new data, U.S. job openings rose in April, signaling continued hiring demand. However, the same report showed that layoffs hit a 9-month high, adding a layer of uncertainty to the picture. These mixed signals suggest the labor market isn't entirely stable. Investors are watching closely to see if interest rate cuts are still on the table—or if the economy is stronger than expected. How are Trump's tariffs and comments on China affecting gold? On the same day gold prices stayed steady, President Donald Trump said Chinese President Xi Jinping is 'extremely hard to make a deal with.' His comment came days after accusing China of backing out of an agreement to reduce tariffs and trade restrictions. Live Events In a sharp move, the U.S. doubled tariffs on steel and aluminum imports on Wednesday. The administration is also pressing trade partners to submit 'best offers' ahead of more penalties expected in early July. This backdrop is adding pressure to global trade flows and supporting demand for gold as a safe-haven asset. Will the U.S. non-farm payrolls data change gold's direction? All eyes are now on the U.S. non-farm payrolls report , due Friday. The data could heavily influence Federal Reserve policy, particularly around interest rates. 'If the data is stronger than expected, interest rate cut expectations are likely to wane, which would weigh on the gold price,' said Carsten Fritsch, analyst at Commerzbank. Gold generally performs well in a low-interest-rate environment. When rates are expected to drop, gold becomes more attractive to investors, since it doesn't yield interest itself. How much movement can we expect in gold prices? For now, analysts expect gold to trade within a fairly tight range. 'We see gold trading between $3,300 and $3,400 per troy ounce in the short term,' Fritsch added. With the market split between upbeat labor signals and global trade worries, gold is likely to stay stuck in a range unless one side clearly tips the scale—either through surprise economic data or an escalation in trade tensions. What's the latest on silver, platinum, and palladium? Other precious metals showed mixed trends: Spot silver dipped by 0.5% to $34.32 an ounce Platinum rose 1.1% to $1,085.50 Palladium fell 0.5% to $1,005.11 These shifts reflect broader market caution as investors look for clarity on rate cuts, global trade, and the strength of the world economy. FAQs: Q1. Why did gold prices stay flat despite rising trade tensions? Stronger U.S. jobs data offset safe-haven demand for gold. Q2. What role does the non-farm payrolls report play in gold prices? It helps predict interest rate policy, which directly impacts gold prices.
Business Recorder
28-04-2025
- Business
- Business Recorder
Gold dips as trade anxiety eases
NEW YORK: Gold prices dipped for a second straight session on Monday as US-China trade tensions eased, and the market awaited data due this week. Spot gold was down 0.6% at $3,297.10 an ounce as of 09:27 a.m. ET (1327 GMT). US gold futures rose 0.3% to $3,307.80. 'Gold prices are still dealing with the improved optimism over a US-China trade deal even though there is a lack of clarity,' Zain Vawda, analyst at MarketPulse by OANDA, said. The hopes that tariff damage was being contained also kept global equity markets at their highest over three weeks. US President Donald Trump says progress has been made with China, and that he has spoken with President Xi Jinping. However, Beijing has denied trade talks are occurring and Treasury Secretary Scott Bessent failed on Sunday to back Trump's assertion that tariff talks with China were under way. Bullion, a traditional hedge against political and financial instability, rose to an all-time high of $3,500.05/oz last week and has gained over 25% so far this year. 'The broader gold forecast and price direction remains constructive, even with some of its haven appeal diminishing,' said Fawad Razaqzada, market analyst at City Index and 'Until we witness clear patterns of lower highs, lower lows, and firm trade agreements rather than more political bluster from the Trump administration, the prospect of fresh highs for gold cannot be dismissed.' The risk is high that the global economy will slip into recession this year, according to a majority of economists in a Reuters poll. Data due this week include the US job openings report on Tuesday, Personal Consumption Expenditures on Wednesday, and the nonfarm payrolls report on Friday. Market participants will scan these to gauge the impact of the latest tariffs on the US economy. Spot silver eased 0.1% to $33.04, platinum gained 1.8% to $988.90 and palladium added 0.8% to $956.35.
The Sun
25-04-2025
- Business
- The Sun
Gold slips amid hopes of easing US-China trade tensions
GOLD declined more than 1% on Friday and was headed for a weekly fall as news that China has exempted some U.S. goods from its tariffs raised hopes of a de-escalation in trade tensions. Spot gold was down 1.5% at $3,296.19 an ounce as of 1136 GMT. It hit a record high earlier this week. U.S. gold futures shed 1.3% to $3,306.50. 'Gold is facing challenges in sustaining its upward momentum as optimism around a potential U.S.-China trade agreement grows,' said Zain Vawda, analyst at MarketPulse by OANDA. China has exempted some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need levy-free, according to businesses notified. China has not yet communicated publicly on any exemptions. The U.S. dollar jumped, making bullion more expensive for overseas buyers. 'A U.S.-China trade agreement could push gold down toward $3,000/oz or lower, depending on other influencing factors,' Vawda said. Gold, traditionally seen as a hedge against geopolitical and economic uncertainties has gained more than 25% so far this year. It also touched a record high of $3,500.05 on Tuesday. Meanwhile, Federal Reserve officials indicated they saw no urgency in revising U.S. monetary policy as they sought more information to determine how Trump's tariffs were affecting the economy. Non-yielding bullion tends to thrive in a low interest rate environment. Meanwhile, gold discounts in India jumped this week to the highest level in nearly nine years as high prices deterred buyers, while premiums in China rose to a more than one-year peak. Spot silver fell 0.8% to $33.31 an ounce, platinum also dropped 0.8% at $962.91 and palladium shed 2.1% to $933.67. Silver was headed for weekly gains, while both platinum and palladium were seen falling for the week.
Asharq Al-Awsat
25-04-2025
- Business
- Asharq Al-Awsat
Gold Slips More Than 1% as China Considers US Tariff Exemption
Gold prices lost more than 1% on Friday and were heading for a weekly fall on signals of a potential de-escalation in the US-China trade war, including news that China was weighing tariff exemptions for some US goods. Spot gold fell 1.5% to $3,299.69 an ounce as of 0830 GMT. US gold futures shed 1.1% to $3,310.20. "Gold is facing challenges in sustaining upward momentum as optimism around a potential US-China trade agreement grows," said Zain Vawda, an analyst at MarketPulse by OANDA. The dollar jumped reversing losses from the prior day while European shares rose after a media report that China was weighing tariff exemptions for some US goods, stoking hopes for a de-escalation in a spiraling trade war between the world's two largest economies. A higher dollar makes the bullion more expensive for overseas buyers. "A US-China trade agreement could push gold down toward $3,000/oz or lower, depending on other influencing factors," Vawda said. US President Donald Trump asserted that trade talks with China are underway, pushing back against Chinese claims that no discussions have taken place to ease the ongoing trade war. Gold, traditionally seen as a hedge against geopolitical and economic uncertainties has gained nearly 26% so far this year. It also touched a record high of $3,500.05 on Tuesday. Meanwhile, Federal Reserve officials indicated they saw no urgency in revising the monetary policy as they sought more information to determine how the Trump administration's tariffs were affecting the economy. Non-yielding bullion tends to thrive in a low interest rate environment. "Now that the market's corrected it will be a good indicator if buying picks up in India," said Ross Norman, an independent analyst. Spot silver fell 0.6% to $33.36 an ounce, platinum dropped 1.2% at $958.89 and palladium fell 1.6% to $938.78. Silver was headed for a weekly gain while the other two metals were seen falling for the week.
New Straits Times
25-04-2025
- Business
- New Straits Times
Gold slips amid hopes of easing US-China trade tensions
BENGALURU: Gold declined more than one per cent on Friday and was headed for a weekly fall as news that China has exempted some US goods from its tariffs raised hopes of a de-escalation in trade tensions. Spot gold was down 1.5 per cent at US$3,296.19 an ounce as of 1136 GMT. It hit a record high earlier this week. US gold futures shed 1.3 per cent to US$3,306.50. "Gold is facing challenges in sustaining its upward momentum as optimism around a potential US-China trade agreement grows," said Zain Vawda, analyst at MarketPulse by OANDA. China has exempted some US imports from its 125 per cent tariffs and is asking firms to identify critical goods they need levy-free, according to businesses notified. China has not yet communicated publicly on any exemptions. The US dollar jumped, making bullion more expensive for overseas buyers. "A US-China trade agreement could push gold down toward US$3,000 per ounce or lower, depending on other influencing factors," Vawda said. Gold, traditionally seen as a hedge against geopolitical and economic uncertainties has gained more than 25 per cent so far this year. It also touched a record high of US$3,500.05 on Tuesday. Meanwhile, Federal Reserve officials indicated they saw no urgency in revising US monetary policy as they sought more information to determine how Trump's tariffs were affecting the economy. Non-yielding bullion tends to thrive in a low interest rate environment. Meanwhile, gold discounts in India jumped this week to the highest level in nearly nine years as high prices deterred buyers, while premiums in China rose to a more than one-year peak. Spot silver fell 0.8 per cent to US$33.31 an ounce, platinum also dropped 0.8 per cent at US$962.91 and palladium shed 2.1 per cent to US$933.67. Silver was headed for weekly gains, while both platinum and palladium were seen falling for the week.
