Gold prices edged higher during the North American session as traders braced for the release of the latest Nonfarm Payrolls (NFP) figures in the United States (US), which could be crucial for the direction of interest rates set by the Federal Reserve (Fed). At the time of writing, XAU/USD was trading at $3,348, up 0.29%.
The latest jobs report, as revealed by ADP, showed that companies are cutting hiring instead of laying off people as they adjust to the current economic environment. News that Microsoft is cutting 9,000 jobs painted a gloomy outlook for the labor market.
On Thursday, the US Bureau of Labor Statistics will release its latest employment report, which is expected to show that the economy added 110,000 Americans to the workforce, below the 139,000 added in May. The Unemployment Rate is expected to rise from 4.2% to 4.3%, still within the 4.4% projection set by the Fed in its latest Summary of Economic Projections.
Geopolitical risks eased sharply as news of a possible 60-day ceasefire in Israel's offensive on Gaza broke. This, coupled with a ceasefire agreement between Israel and Iran, capped Gold's rally, with the yellow metal faltering in its attempt to reclaim the $3,400 mark.
Also, traders' focus shifted to the trade deal between the US and its neighbors. With the July 9 deadline looming, US President Trump has said he will not extend the deadline to continue higher tariffs.
The shortened week, ahead of the US Independence Day on July 4, will feature Initial Jobless Claims and NFP on Thursday.(alg)
Source: FXstreet
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