Gold prices held steady above $3,350 per ounce during Asian trading today, amid market anticipation ahead of key U.S. economic data and expected comments from several Federal Reserve officials. This movement comes as renewed pressure mounts on the U.S. dollar, driven by escalating concerns over trade policies.
Gold had recently pulled back from a monthly high of $3,392 but managed to pare its losses as the dollar faced fresh selling pressure, fueled by renewed anxiety over global trade tensions. Markets are now focused on the deadline set by the U.S. administration for its trade partners to submit final offers as part of trade negotiations, coinciding with the implementation of a tariff hike to 50% on steel and aluminum imports.
Meanwhile, markets are also awaiting a potential meeting between U.S. President Donald Trump and Chinese President Xi Jinping, as tensions between the two nations escalate. This comes especially after FBI official Kash Patel announced via the “X” platform the arrest of two Chinese nationals accused of smuggling mushrooms suspected of potential harmful biological use inside the U.S.
Both sides have recently exchanged accusations regarding violations of a deal signed last May, which included partial tariff reductions. Since gold is priced in U.S. dollars, any decline in the greenback particularly due to rising tariffs could offer temporary support for the precious metal.
Attention now shifts to the release of U.S. private sector employment data (ADP) and the ISM Services PMI, both considered key indicators of the U.S. economy’s health and potential signals for future Federal Reserve policy direction, which would in turn affect the dollar.
As for labor data, the U.S. dollar received a boost recently following the release of the Job Openings and Labor Turnover Survey (JOLTS), which showed job openings rising to 7.39 million at the end of April, up from 7.2 million in March exceeding expectations of 7.1 million.
This increase signals ongoing strength in the U.S. labor market, which could sustain inflationary pressures and reinforce the likelihood of the Fed maintaining its current tight monetary policy stance for a longer period.
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