Gold prices fell to $3,320 per ounce on Thursday, down from the earlier session high of $3,365, following robust labor market data that dampened expectations of the Federal Reserve adopting a dovish stance. The jobs report for June revealed an addition of nearly 150,000 jobs to the U.S. economy, significantly surpassing the forecasted 110,000. This strong performance countered arguments suggesting a weak labor market justified a Fed rate cut this month.
Meanwhile, fiscal uncertainties receded as optimism grew that members of the House had resolved certain obstacles and were poised to endorse President Trump's tax and spending bill, designed to sustain the aggressive budgetary deficit endorsed by the Senate. Additionally, market participants were keenly anticipating updates on new trade agreements from the Commerce Department ahead of the July 9 deadline for the potential reinstatement of Liberation Day tariffs. Although tariffs on Vietnam were reduced to 20% from 46%, reports indicated negotiations with other major trading partners were encountering challenges.
