US nonfarm payrolls report that exceeded expectations has tempered US rate cut hopes
09 June 2025 - 07:30
byAnmol Choubey
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Bengaluru — Gold prices edged down on Monday as optimism over possible easing of US-China trade tension dampened bullion demand, while an outsize US jobs report tempered the expectation of interest rate cuts by the Federal Reserve.
Spot gold edged 0.1% lower to $3,310.68/oz by 4am GMT. US gold futures lost 0.5% to $3,330.10.
Three top aides of US President Donald Trump will meet their Chinese counterparts in London later in the day to discuss the trade disputes between the two economies, a standoff that has kept global markets on edge.
“Short-term traders do not want to take aggressive long positions right now ahead of the outcome of the US-China talks,” said Kelvin Wong, a senior market analyst, Asia Pacific at Oanda.
Though tariffs would not disappear, the talks may lower the baseline, Wong said, adding that the cost of doing business in the US would remain elevated, and the widening US budget deficit could worsen inflationary pressures.
On the technical front, spot gold is expected to retest support at $3,296, a break below which could open the way towards $3,262, according to Reuters technical analyst Wang Tao.
US nonfarm payrolls topped expectations, with wage growth exceeding projections and the unemployment rate steady.
Investors scaled back bets on rate cuts for the year from two to only one in October. US consumer price index (CPI) data, due on Wednesday, could give more clues.
Meanwhile, Trump said a decision on the next Fed chair would be announced soon, adding that a “good Fed chair” would lower rates.
The bullion, a safe-haven asset, often thrives during uncertainties and in low-interest-rates environment.
China’s central bank added gold to its reserves in May for the seventh consecutive month, official data showed.
Elsewhere, spot silver was unchanged at $35.98/oz, platinum edged up 0.1% to $1,170.89, while palladium fell 0.4% to $1,042.52.
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 slips as US-China trade talks dampen demand
US nonfarm payrolls report that exceeded expectations has tempered US rate cut hopes
Bengaluru — Gold prices edged down on Monday as optimism over possible easing of US-China trade tension dampened bullion demand, while an outsize US jobs report tempered the expectation of interest rate cuts by the Federal Reserve.
Spot gold edged 0.1% lower to $3,310.68/oz by 4am GMT. US gold futures lost 0.5% to $3,330.10.
Three top aides of US President Donald Trump will meet their Chinese counterparts in London later in the day to discuss the trade disputes between the two economies, a standoff that has kept global markets on edge.
“Short-term traders do not want to take aggressive long positions right now ahead of the outcome of the US-China talks,” said Kelvin Wong, a senior market analyst, Asia Pacific at Oanda.
Though tariffs would not disappear, the talks may lower the baseline, Wong said, adding that the cost of doing business in the US would remain elevated, and the widening US budget deficit could worsen inflationary pressures.
On the technical front, spot gold is expected to retest support at $3,296, a break below which could open the way towards $3,262, according to Reuters technical analyst Wang Tao.
US nonfarm payrolls topped expectations, with wage growth exceeding projections and the unemployment rate steady.
Investors scaled back bets on rate cuts for the year from two to only one in October. US consumer price index (CPI) data, due on Wednesday, could give more clues.
Meanwhile, Trump said a decision on the next Fed chair would be announced soon, adding that a “good Fed chair” would lower rates.
The bullion, a safe-haven asset, often thrives during uncertainties and in low-interest-rates environment.
China’s central bank added gold to its reserves in May for the seventh consecutive month, official data showed.
Elsewhere, spot silver was unchanged at $35.98/oz, platinum edged up 0.1% to $1,170.89, while palladium fell 0.4% to $1,042.52.
Reuters
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