Gold eased after a three-day gain, before pivotal US jobs data due later Thursday that may shape the outlook for the Federal Reserve's monetary easing path.

Bullion traded near $3,345 an ounce after gaining more than 2% earlier this week, as markets shifted focus to the incoming payrolls report that's forecast to show 106,000 jobs were added to the economy in June, which would mark the fewest in four months. Separate data from ADP Research on Wednesday showed employment at US companies fell for the first time in over two years, prompting traders to boost bets on at least two rate cuts before 2026.

A pronounced deterioration in the labor market could pressure officials to cut interest rates as early as this month, even as Fed Chair Jerome Powell has highlighted labor market resilience and underscored a "wait-and-see" approach to assess the impact of tariffs on inflation. Lower borrowing costs tend to benefit gold, as it doesn't pay interest.

Gold is up by more than a quarter this year, trading around $150 short of a record set in April. The precious metal has been bolstered by demand for havens as investors grapple with heightened geopolitical and trade tensions. The rally has also been supported by robust central-bank purchases, as well as inflows into bullion-backed exchange-traded funds.

Meanwhile, there are lingering concerns about the US deficit, with President Donald Trump's sweeping tax and spending bill expected to add an estimated $3.4 trillion to the nation's debt over a decade. Should the legislation before the House be approved, gold's haven appeal could be boosted.

Investors also continued to monitor progress in US trade negotiations, after Trump said he reached a deal with Vietnam. As his July 9 deadline for higher tariffs approaches, there are signs investors are becoming increasingly less worried by the president's unpredictable stance on levies given the economy appears resilient for now.

Spot gold was down 0.4% to $3,345.86 an ounce as of 8:28 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat, down 0.6% so far this week. Silver, palladium and platinum all fell.

Source: Bloomberg