FX.co ★ Gold Holds Steady as Investors Digest Mixed Jobs Data

Gold prices remained stable around $3,350 per ounce on Wednesday, after reversing initial gains, as investors digested mixed data from the U.S. labor market and ongoing trade tensions. The ADP report indicated a significant slowdown in private sector job growth, with only 37,000 jobs added in May, far below expectations and marking the slowest pace since March 2023. Conversely, the JOLTs report exceeded expectations, revealing an increase in job openings to 7.39 million in April. Investors are now looking forward to Friday’s much-anticipated nonfarm payrolls report for more insight into the Federal Reserve's interest rate strategy. Meanwhile, President Trump has intensified his pressure on Fed Chair Jerome Powell to lower interest rates. However, Fed officials remain cautious about such a move, due to the uncertain inflationary consequences of the rising tariffs. On trade matters, Trump remarked on the challenges of reaching an agreement with Chinese President Xi Jinping. Additionally, the U.S. has officially increased tariffs to 50% on most imported steel and aluminum, effective today.