Gold prices hold weekly gains despite minor dip, driven by economic uncertainty and geopolitical risks

From None: 2025-06-05 06:56:00

Gold prices saw a minor dip in Asian trade, but are set for a strong weekly gain due to economic and geopolitical uncertainty. Spot gold fell 0.1% to $3,368.61 an ounce, while gold futures for August dropped 0.2% to $3,382.65/oz. The metal is up 2.4% this week, driven by weak U.S. labor data.

The recent rally in gold followed softer ADP payrolls data, suggesting a cooling U.S. job market. Expectations of further Fed rate cuts favor non-yielding assets like gold. Attention now shifts to Friday’s nonfarm payrolls report, which could reinforce the narrative of an economic slowdown and support gold prices.

U.S. President Trump’s tariff threats have heightened risk sentiment, with doubled tariffs on steel and aluminum. Uncertainty over trade deals and global growth concerns have kept investors cautious, supporting gold prices. Dollar weakness amid dovish Fed expectations has also boosted gold, making it more attractive to non-U.S. buyers.

For real-time market updates, use the Commodities API to track gold prices and the Economics Calendar API for key economic data influencing gold markets. Despite a slight pullback, the outlook for gold remains positive, with Fed rate cuts and trade uncertainty driving demand for the precious metal as a strategic hedge in uncertain times.



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