Gold held gains, after weaker-than-expected US data reinforced expectations that the Federal Reserve will cut interest rates at least twice this year to prevent a recession.

Bullion traded near $3,375 an ounce, following a 0.6% increase on Wednesday, after separate reports showed a contraction in US service providers and a deceleration in hiring. Treasury yields fell after the prints, with swap traders pricing in two Fed reductions in October and December. Lower rates are typically a tailwind for gold, which doesn't bear interest. 

Elsewhere, fears about worsening friction between the US and some of its major trading partners resurfaced after President Donald Trump doubled steel and aluminum tariffs to 50%. Separately, he labeled Chinese counterpart Xi Jinping as "extremely hard to make a deal with". 

Bullion is up almost 30% this year and hit a record high in April, as an expanding US-led tariff war bolstered its appeal as a haven. Central banks have also been a major driving force, with their buying spree expected to continue amid geopolitical tensions and concerns about overexposure to the dollar.

Spot gold edged up 0.1% to $3,375.21 an ounce as of 7:41 a.m. in Singapore. The Bloomberg Dollar Spot Index was down 0.1%, following a 0.4% loss on Wednesday. Silver was flat, while platinum and palladium rose.

Looking ahead, a US jobs report due Friday is expected to show that growth in nonfarm payrolls slowed and the unemployment rate remained steady.

Sumber: Bloomberg