Gold prices steadied on Wednesday as investors awaited US payroll data and assessed Federal Reserve Chair Jerome Powell’s cautious stance on rate cuts, although a weaker dollar helped limit losses for the greenback-priced bullion.
Spot gold was little changed at $3,341.70 per ounce while US gold futures were steady at$3,351.40.
The US dollar index 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 US central bank plans to “wait and learn more” about the impact of tariffs on inflation before lowering interest rates, again setting aside US President Donald Trump’s demands for immediate and deep rate cuts.
US job openings unexpectedly increased in May, but a decline in hiring added to signs that the labor market had shifted into lower gear amid uncertainty over the Trump administration’s tariffs on imports.
Investors are now awaiting US ADP employment data, due later in the day, and nonfarm payroll figures on Thursday for further insights into labor market conditions.
“The biggest risk for gold is an unexpectedly strong (NFP) result, but that seems rather unlikely to happen,” Spivak said.
Meanwhile, US 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.
