Gold prices eased from one-week highs during Thursday's Asian session, consolidating gains from a three-day rally as investors positioned ahead of key United States economic data and potential trade policy announcements from President Donald Trump.
By 4:10 pm AEDT (5:10 am GMT) spot gold was down $3.2 or 0.1% to US$2,916.08 per ounce, just 1.3% below all-time highs.
Gold remains poised for further gains as the U.S. dollar continued to weaken, driven by expectations of Federal Reserve interest rate cuts amid concerns over slowing U.S. economic growth.
ANZ analysts highlighted the potential impact of Trump’s trade and foreign policies on the economy, noting that "Import tariffs will also have macroeconomic implications for the US economy. This should benefit gold as investors hedge portfolios against a volatile macro backdrop”.
Despite Trump’s temporary pause on auto tariffs and discussions over agricultural exemptions for Canada and Mexico, the U.S. dollar remained under pressure following weaker-than-expected economic data.
On Wednesday, data from the ADP Research Institute revealed that the U.S. private sector added just 77,000 jobs in February, significantly below the expected 140,000 and down from January’s 186,000.
Traders are also watching the European Central Bank (ECB) policy decision, which could impact the euro’s strength against the dollar.
The euro has surged to a four-month high against the dollar, buoyed by a rally in German bund yields after political leaders in Germany agreed on a substantial economic stimulus package.
Gold traders now await Friday’s nonfarm payroll report for insights into the Fed’s monetary policy path.
In the short term, attention will be on mid-tier U.S. jobless claims data and further tariff-related developments from the Trump administration.
