Gold prices steady.
Gold prices steadied in Asian trade on Thursday after three days of gains, as investors turned cautious ahead of key U.S. payroll data for clues on the Federal Reserve’s policy outlook.
Bullion found support from U.S. fiscal deficit concerns as House Republicans pushed to pass President Trump’s sweeping tax-cut bill, while uncertainty around U.S. trade deals ahead of the July 9 tariff deadline also supported sentiment.
Spot Gold was largely unchanged at $3,352.75 an ounce, while Gold Futures for August gained 0.1% to $3,363.70/oz by 01:43 ET (05:43 GMT).
Gold has risen nearly 2.5% this week so far, gaining the ground it lost last week.
US jobs report awaited to gauge Fed rate outlook
Investors await the key non-farm payrolls report on Thursday to get further insights on the Fed’s rate path.
Fed Chair Jerome Powell’s recent cautious stance was seen as slightly dovish as he did not rule out the chances of a rate cut next month.
Dollar steady.
The U.S. dollar firmed on Thursday after a trade accord between the United States and Vietnam fuelled optimism over the potential for other deals ahead of July 9 when U.S. tariffs take effect, while investors looked to payrolls to assess the next Fed step.
Sterling was steady after a nearly 1% drop in the previous trading session, as UK Prime Minister Keir Starmer’s office backed under-fire Finance Minister Rachel Reeves, hoping to allay investor worries about Britain’s finances.
British government bonds also tumbled on Wednesday, as a tearful appearance by Reeves in parliament a day after the government backed down on welfare reforms stoked fiscal concern.
The pound last fetched $1.3628, while the euro eased a touch to $1.1788, still near the September 2021 top it hit earlier this week. The yen was a tad weaker at 143.84 per dollar. Currency strategist Carol Kong at Commonwealth Bank of Australia (OTC:CMWAY) said market participants are worried Reeves could be replaced with someone less committed to the government’s self-imposed fiscal rules and more willing to borrow.
Asia stocks mixed amid tariff uncertainty.
Asian stock markets struggled for direction on Thursday as investors awaited progress on U.S. trade deals ahead of the July 9 deadline, while they assessed China’s services data and Australia’s trade balance figures.
Markets across the globe turned cautious ahead of the U.S. jobs report, due later in the day, which could provide insights on the Federal Reserve’s interest rate outlook.
Major U.S. stock indexes rose on Wednesday, with the S&P 500 and Nasdaq bouncing back to respective record highs. Wall Street futures were largely unchanged in Asian trading hours on Thursday.
Asia stocks mixed in choppy trade as tariff deadline nears
President Donald Trump said on Wednesday that the U.S. has reached a trade agreement with Vietnam, notching a third deal ahead of the July 9 deadline.
Trump had said he won’t extend the deadline, signalling that if no deal is reached by then, affected nations will receive formal letters outlining the tariff rates they will face.
However, earlier this week, Trump cast doubt on a Japan deal and threatened 30–35% tariffs on imports.
With less than a week until the deadline, the U.S. has secured just three trade deals— with the UK, China, and Vietnam.
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