Gold prices ticked higher during Asian deals on Friday, remaining under pressure near monthly lows as markets turned their attention to the upcoming United States nonfarm payrolls (NFP) data and the broader impact of newly announced U.S. tariffs.
By 3:45 pm AEST (5:45 am GMT), spot gold was up modestly by $3.93, or 0.1%, at US$3,294.05 per ounce, consolidating after a week of losses and hovering just above the recent lows of $3,268.12.
Despite the slight intraday uptick, gold remains on track for another weekly decline, with risk sentiment still fragile heading into the weekend.
Investors are digesting a fresh round of tariffs announced by U.S. President Donald Trump on Thursday, just ahead of the 1 August trade deadline.
Trump imposed a minimum global tariff of 10%, while raising tariffs on Canadian goods to 35% from 25% for products not covered under the U.S.-Mexico-Canada Agreement.
Imports from Switzerland now face a 39% tariff rate. Mexico was granted a 90-day reprieve to finalise a broader trade agreement.
The updated tariffs rattled markets, pushing investors toward safe-haven assets like the U.S. dollar rather than gold, which typically benefits during periods of uncertainty.
The renewed U.S. dollar strength has kept bullion prices capped near their lowest levels in over a month.
Gold’s weakness has also been reinforced by the Federal Reserve’s decision earlier this week to keep interest rates unchanged, while maintaining a hawkish tone.
The prospect of delayed rate cuts has fuelled demand for the dollar and weighed on non-yielding assets like gold.
Market focus now shifts to the July U.S. jobs report due Friday evening, which could offer fresh cues on the Fed’s next move. Economists expect the U.S. economy to have added 110,000 jobs last month, following a 147,000 gain in June.
The unemployment rate is forecast to edge up slightly to 4.2% from 4.1%.
According to the CME Group FedWatch Tool, traders are currently pricing in a 41.2% chance of a rate cut in September, suggesting that gold may remain under pressure unless labour data surprises to the downside.
