Gold prices are trading flat as European markets open, hovering just below the multi-week highs reached earlier this week. This reflects a wait-and-see approach among traders, whose attention is already turning to Friday’s release of US non-farm payrolls data for May. The precious metal continues to find support amid ongoing uncertainty over US tariff policy, a subdued global economic outlook, and persistent geopolitical tensions — all of which are reinforcing gold’s haven appeal. In this context, tomorrow’s employment figures from the US could prove pivotal in shaping expectations for the Federal Reserve’s next moves. With signs that the US labour market is cooling, investors appear increasingly confident that the Fed will begin cutting rates before the end of the summer, with at least one additional cut likely by year-end. This scenario is expected to weigh on the US dollar and, given the inverse correlation between the two assets, lend further support to gold prices.
Ricardo Evangelista, ActivTrades
Source: ActivTrader
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