Gold prices fell slightly in the trading session on Wednesday, as cautious investors did not bet big in the face of a series of US employment data expected to clarify the policy direction of the US Federal Reserve (FED).
Spot gold decreased by 0.2%, to 3,333.45 USD/ounce at 4:01 p.m. Vietnam time. US gold futures also fell 0.2%, to $3,344.10 an ounce.
Giovanni Staunovo, an analyst at UBS, said: In recent weeks, investors have not adjusted much of their expectations for the Fed to cut interest rates further this year. We still believe that concerns about public debt, pressure forcing the Fed to adjust interest rates and weaker US economic data will support gold prices.
Data released on Tuesday showed that the number of new jobs in the US unexpectedly increased in May, but the decline in recruitment continued to strengthen signs that the labor market had slowed down.
FED Chairman Jerome Powell reaffirmed that the US central bank will "passively wait for more information" about the impact of tariffs on inflation before cutting interest rates, continuing to put aside US President Donald Trump's request for a deep and immediate rate cut.
The market is now paying attention to the ADP jobs report due out on the day, ahead of the June non-farm payrolls data released on Thursday, for further clues on labor market health.
We believe that it will take a regional war in the Middle East (low probability) or a strong Fed rate cut for gold to surpass the historical peak of $3,500/ounce set in April, BMI experts said in the report.
In other developments, the Republican-controlled US Senate has just passed Donald Trump's tax and spending package at a tight pace, including tax cuts, cuts to social security programs and increased military spending, and an additional $3,300 billion in national public debt.
In other precious metals, spot silver rose 0.2% to $36.12 an ounce, platinum rose 0.5% to $1,356.96/ounce, while gold moved 0.5% to $1,105.68 an ounce.
