FX.co ★ Gold Retains Advance

Gold maintained its upward trajectory on Thursday, lingering near $3,370 per ounce—a level not seen for almost a month—amid rising economic uncertainty. Recent reports indicate that the US service sector activity has contracted for the first time in nearly a year, alongside ADP data showing the slowest private sector job growth since March 2023. These weaker-than-expected economic indicators have strengthened the belief that the Federal Reserve might reduce interest rates twice this year, which generally benefits non-yielding investments such as gold. Despite President Trump’s persistent calls for rate cuts, Federal Reserve officials remain cautious, especially with trade-related concerns looming. Investors are now awaiting Friday’s nonfarm payroll report for more clarity on the Federal Reserve’s future policy decisions. Meanwhile, trade tensions continue to escalate following Trump's decision to double tariffs on steel and aluminum and his remarks about Chinese President Xi Jinping, portraying him as a particularly challenging negotiation partner.