Gold Prices Stable Amid Improving Trade Prospects and Awaited US Jobs Data
Gold prices maintained their stability during today's session on Thursday, July 3, amid an improvement in the trade scene after the United States announced a reduction in tariffs on Vietnam, in addition to market anticipation for the release of the US jobs report that may determine future monetary policy directions.
Gold futures recorded a slight increase of 0.1% to reach $3364.4 per ounce, while investors await employment data that could impact the movements of the yellow metal.
In foreign trade developments, US President Donald Trump announced a reduction in tariffs imposed on Vietnamese imports to be less than the previously announced rate of 20%, in a move aimed at strengthening relations with Vietnam, the tenth largest trading partner of Washington.
In a related context, the United States and India continue their talks to reach a trade agreement before the deadline set for July 9, with some issues still unresolved, notably disputes over dairy products and agricultural exports, according to informed sources cited by Reuters. Despite the stalled negotiations with Japan, Trump expressed optimism about the possibility of reaching an agreement with India without extending the specified deadline.
On the economic front, data from the ADP Research Institute revealed a decline of 33,000 private sector jobs in the US in June, the first such decrease in over two years, due to the economic uncertainty prevailing in the US economy.
The non-farm payrolls report for June is expected to be released later today, with analysts expecting the addition of 110,000 new jobs, compared to 139,000 in May, according to a Reuters survey.
Amid these developments, market expectations lean towards the Federal Reserve's likely cut of US interest rates by 66 basis points before the end of the year, as part of efforts to support economic growth.
