Gold set for weekly gain, while traders await payrolls report
Metal firms as soft US data outweighs optimism over Donald Trump’s call with Xi Jinping
06 June 2025 - 07:29
byAnmol Choubey
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Bengaluru — Gold rose on Friday and was set for weekly gains, as a spate of soft US economic data outweighed initial optimism over US President Donald Trump’s call with his Chinese counterpart Xi Jinping, while investors awaited US payroll data.
Spot gold was up 0.5% at $3,368.49/oz 3.40am GMT. Bullion has gained 2.5% for the week so far.
US gold futures climbed 0.5% to $3,391.40.
Trump and Xi engaged in a rare leader-to-leader call on Thursday, addressing escalating trade tensions and disputes over critical minerals, though key issues remain unresolved.
“Some of the initial enthusiasm for risk appetite following the Trump-Xi call has started to wear off, which has enabled gold to creep higher,” said Tim Waterer, chief market analyst at KCM Trade, adding, as Trump’s optimistic take masked recent weak US economic data earlier.
The number of Americans filing new applications for unemployment benefits increased to a seven-month high last week.
Investors are now awaiting US nonfarm payroll data due at 12:30pm GMT, after a slew of data throughout this week highlighting labour market softness.
Economists polled by Reuters forecast nonfarm payrolls increased by 130,000 jobs in May, down from 177,000 in April, while the unemployment rate is expected to remain steady at 4.2%.
“The upcoming [nonfarm payrolls] release could be the catalyst for a breakout should the data produce a significant miss on either side of expectations,” Waterer said.
Fed policymakers indicated that inflation remained a greater concern than labour market cooling, suggesting a prolonged hold on monetary policy adjustments.
Gold, often seen as a safe-haven asset, tends to perform well during economic uncertainty and in low-interest-rate environments.
Spot silver fell 0.4% to $35.99/oz, still hovering near a 13-year high, while platinum rose 1.7% to $1,149.88 and palladium was up 0.8% at $1,014.31. All three metals were headed for weekly gains.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold set for weekly gain, while traders await payrolls report
Metal firms as soft US data outweighs optimism over Donald Trump’s call with Xi Jinping
Bengaluru — Gold rose on Friday and was set for weekly gains, as a spate of soft US economic data outweighed initial optimism over US President Donald Trump’s call with his Chinese counterpart Xi Jinping, while investors awaited US payroll data.
Spot gold was up 0.5% at $3,368.49/oz 3.40am GMT. Bullion has gained 2.5% for the week so far.
US gold futures climbed 0.5% to $3,391.40.
Trump and Xi engaged in a rare leader-to-leader call on Thursday, addressing escalating trade tensions and disputes over critical minerals, though key issues remain unresolved.
“Some of the initial enthusiasm for risk appetite following the Trump-Xi call has started to wear off, which has enabled gold to creep higher,” said Tim Waterer, chief market analyst at KCM Trade, adding, as Trump’s optimistic take masked recent weak US economic data earlier.
The number of Americans filing new applications for unemployment benefits increased to a seven-month high last week.
Investors are now awaiting US nonfarm payroll data due at 12:30pm GMT, after a slew of data throughout this week highlighting labour market softness.
Economists polled by Reuters forecast nonfarm payrolls increased by 130,000 jobs in May, down from 177,000 in April, while the unemployment rate is expected to remain steady at 4.2%.
“The upcoming [nonfarm payrolls] release could be the catalyst for a breakout should the data produce a significant miss on either side of expectations,” Waterer said.
Fed policymakers indicated that inflation remained a greater concern than labour market cooling, suggesting a prolonged hold on monetary policy adjustments.
Gold, often seen as a safe-haven asset, tends to perform well during economic uncertainty and in low-interest-rate environments.
Spot silver fell 0.4% to $35.99/oz, still hovering near a 13-year high, while platinum rose 1.7% to $1,149.88 and palladium was up 0.8% at $1,014.31. All three metals were headed for weekly gains.
Reuters
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