Gold boosting during Wednesday morning trading on weak U.S. jobs report and ongoing haven demand driven by tariff war concerns.
Disappointing jobs numbers for May show private payrolls rose just 37,000, well below April’s 60,000 mark and the forecasted 110,000. This marks ADP’s lowest monthly job total since March 2023. The monthly U.S. jobs report from the Labor Department is due out on Friday, with weekly initial jobless claims out on Thursday.
Investors have been jittery in recent weeks amid uncertainty surrounding U.S. President Donald Trump’s trade and tariff policies and their effect on the economy. The effect of Trump’s tax bill, currently in Congress, on the deficit is also worrying markets.
August gold futures fell 0.6% Tuesday to settle at $3,377.10 an ounce on Comex, though the front-month contract gained 1.9% in the first two days of the week. Bullion slipped 0.1% last month after increasing 5.4% in April and gaining 11% in March. It’s up 28% this year. The metal rose 27% in 2024, its biggest annual gain since 2010. The August contract is currently up $0.5 (+0.01%) an ounce to $3377.60 and the DG spot price is $3382.80.
Gold fell Tuesday amid dollar strength after the Bureau of Labor Statistics reported in the Job Openings and Labor Turnover Survey report that U.S. job openings unexpectedly climbed to 7.39 million in April, driven by private-sector demand.
The increase in the U.S. job openings in April signaled that the economy may remain resilient, despite threats of tariffs, reducing gold’s appeal as a hedge against uncertainty. The reports for the rest of the week are likely to provide further direction.
The Federal Reserve closely watches inflation and the labor market in determining monetary policy.
Last month, the central bank left interest rates unchanged again at 4.25% to 4.50%. Most investors tracked by the CME FedWatch Tool now expect the Fed to begin interest rate cuts in September, not the next two scheduled policy meetings in June and July. Lower interest rates are typically bullish for gold, making the yellow metal a more attractive alternate investment.
The Fed held rates at policymakers’ meetings this year after reducing them three times in 2024. The central bank began raising interest rates in March 2022 to fight inflation, ultimately imposing increases of by 5.25 percentage points before beginning rate cuts last year. Previously, the Fed had kept rates at 5.25% to 5.50% for a year.
Meanwhile, Bloomberg reported that central banks and sovereign wealth funds are likely to keep buying gold and drive a further rally in the price of the precious metal. Additionally, Trump signed a directive raising steel and aluminum tariffs on Tuesday, potentially spurring more haven investment into the precious metal.
Front-month silver futures retreated 0.2% Tuesday to settle at $34.63 an ounce on Comex, though the July contract rallied 4.9% in the first two days of the week. Silver added 0.6% in May after dropping 5.2% in April and advancing 9.9% in March. It gained 21% in 2024. The July contract is currently up $0.113 (-0.33%) an ounce to $34.520 and the DG spot price is $34.53.
Spot palladium rose 2% Tuesday to $1,018.00 an ounce and is up 4.5% so far this week. Palladium advanced 2.8% last month after falling 4.9% in April and rising 7.3% in March. Palladium dropped 17% last year. Currently, the DG spot price is down $15.30 an ounce to $1009.50.
Spot platinum gained 1.3% Tuesday to $1,082.70 an ounce and is up 2.2% so far this week. It surged 8.6% in May after retreating 3.1% in April and increasing 6.7% in March. Platinum lost 8.4% in 2024. The DG spot price is currently up $16.90 an ounce to $1096.80.
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