FX.co ★ Gold Rises as Weak US Data Fuels Fed Rate Cut Bets

Gold experienced a resurgence on Wednesday, moving closer to $3,370 per ounce and nearing a one-month peak, as a series of disheartening US economic reports reignited concerns about economic prospects. The ISM services PMI indicated that the sector contracted in May for the first time in nearly a year, hampered by a significant decline in new business and a sharp rise in input costs, likely linked to the Trump administration's new tariffs. In addition, ADP data showed that private employers added only 37,000 jobs in May, falling far short of forecasts and marking the slowest growth rate since March 2023. Investors are now anticipating Friday’s nonfarm payrolls data for further insights into the Federal Reserve’s potential policy moves. Despite President Trump's continued calls for interest rate cuts, Federal Reserve officials remain cautious amid ongoing trade-related uncertainties. On the trade front, President Trump remarked on the difficulty of reaching a deal with Chinese President Xi Jinping, and the United States officially increased tariffs to 50% on most imported steel and aluminum starting today.