Golden Pause: Pre-Fed Jitters Melt Metal’s Momentum

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Gold prices fell on Thursday as investors went on the defensive ahead of the release of key U.S. payroll data that will guide the Federal Reserve's next move on interest rates. The precious metal finds itself between two limits at times when it is used as a hedge during economic uncertainty as markets look for direction.

Market Movement

Spot Gold: Down by 0.3% at $3,346.47 per ounce as of 02:11 GMT.
U.S. Gold Futures: Small decline of 0.1% to $3,357.20.
Gold is in the range of $3,320–$3,360, which shows a wait-and-watch attitude.

Economic Backdrop

Investors are waiting for the U.S. Non-Farm Payrolls announcement, which is expected to add 110,000 jobs in June against 139,000 in May.
ADP release revealed a surprise fall of 33,000 private-sector jobs, the first in more than two years.
Softness of the labor market could prompt the Fed to reduce rates towards the end of the year.

Fed Policy Consequences

Fed Chairman Jerome Powell reiterated a "wait-and-learn" approach on tariffs and inflation.
Markets are expecting a potential 66-basis-point cut in September to December.
Lower interest rates typically benefit gold, which does not earn interest.

World Trade & Political Issues

A U.S.–Vietnam trade pact eased tensions, as a 20% tariff has been imposed on selected products.
India negotiations are continuing, but the Japanese ones are stalled.
These events are influencing broader market sentiment and safe-haven demand.

Other Precious Metals