Gold prices held steady on Wednesday, as stronger-than-expected U.S. jobs data for April helped offset ongoing concerns over U.S.-China trade tensions and global economic uncertainties.
As of 06:09 GMT, spot gold was stable at $3,351.49 per ounce, while U.S. gold futures were also flat at $3,375 per ounce.
Trade Tensions Continue to Weigh on Markets
Kelvin Wong, Senior Market Analyst at OANDA Asia Pacific, commented, “We may see buying interest at lower levels, but the uncertainty remains, particularly surrounding trade relations between the U.S. and China, and even with the European Union.”
Despite this, Tim Waterer, Chief Market Analyst at KCM Trade, noted that the latest JOLTS employment data alleviated some concerns regarding the potential economic impact of tariffs. This, in turn, subdued demand for safe-haven assets like gold.
“While there’s still uncertainty, the employment numbers helped reduce some of the worries about the economic impact of tariffs on the U.S.,” Waterer said.
Trade Talks and Global Economic Outlook
White House officials confirmed that U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet later this week to discuss trade differences.
China’s Foreign Minister Wang Yi called on the U.S. to create the necessary conditions for the two nations to return to “the right track” in their bilateral relations.
U.S. economic data showed a rise in job openings for April, though layoffs surged to their highest level in nine months, indicating some softening in the labor market.
The Organization for Economic Cooperation and Development (OECD) warned that the trade policies under the Trump administration were taking a toll on the U.S. economy, with global economic concerns escalating. The OECD’s report also suggested that the global economic slowdown may exceed initial expectations.
“From a mid-term perspective, the OECD report will likely be a supportive factor for safe-haven demand,” Wong added.
Fed’s Cautious Stance Amid Trade Uncertainty
Federal Reserve officials have reiterated their cautious stance on monetary policy, highlighting the risks posed by trade tensions and broader economic uncertainty.
Gold often performs well during periods of economic uncertainty, and this has been a key factor in recent price stability.
Other Precious Metals
In other metals markets, silver declined by 0.3% to $34.40 per ounce, while platinum rose 0.3% to $1,076.86 per ounce. Palladium fell by 0.9%, trading at $1,001.42 per ounce.
