By Reuters
Gold prices edged lower on Wednesday as investors awaited US payroll data and assessed Federal Reserve Chair Jerome Powell鈥檚 cautious stance on rate cuts, although a weaker dollar helped limit losses for greenback-priced bullion.
Spot gold was down 0.2% at $3,330.68 per ounce, as of 0217 GMT, while US gold futures fell 0.3% to $3,340.60.
The US dollar index weakened to its lowest point in more than three years, making bullion more affordable for holders of other currencies.
鈥淕old prices are consolidating after posting the strongest gains in two weeks. The overall trend bias continues to favour the upside for now,鈥 said Ilya Spivak, head of global macro at Tastylive, adding Fed policy expectations are taking center stage at the moment.
Powell reiterated that the US central bank plans to 鈥渨ait and learn more鈥 about the impact of tariffs on inflation before lowering interest rates, again setting aside US President Donald Trump鈥檚 demands for immediate and deep rate cuts.
US job openings unexpectedly increased in May, but a decline in hiring added to signs that the labour market had shifted into lower gear amid uncertainty over the Trump administration鈥檚 tariffs on imports.
Investors are now awaiting US ADP employment data, due later in the day, and nonfarm payroll figures on Thursday for further insights into labour market conditions.
鈥淭he biggest risk for gold is an unexpectedly strong (NFP)result, but that seems rather unlikely to happen,鈥 Spivak said.
Meanwhile, US Senate Republicans narrowly passed Trump鈥檚 tax-and-spending bill on Tuesday, a package cutting taxes, reducing social safety net programmes, and boosting military spending, while adding $3.3 trillion to the national debt.
Trump expressed optimism on Tuesday about a potential trade deal with India but was skeptical about reaching a similar agreement with Japan.
He added that he was not considering an extension of the July 9 deadline for countries to negotiate trade deals. Spot silver edged down 0.1% to $36.01 per ounce, platinum fell 0.4% to $1,344.91, while palladium gained 0.4% to $1,104.92.