Gold prices steadied on Wednesday as stronger-than-expected U.S. jobs data for April helped offset lingering uncertainties surrounding U.S.-China trade relations and broader global economic concerns.
Spot gold remained relatively stable at $3,351.49 per ounce as of 0609 GMT, while U.S. gold futures held steady at $3,375.
Kelvin Wong, senior market analyst for Asia Pacific at OANDA, noted that despite ongoing uncertainties, “we potentially see dip-buyers returning to the market.” He highlighted concerns over the trade tensions between the U.S. and China, as well as between the U.S. and the European Union, which continue to weigh on market sentiment.
Tim Waterer, chief market analyst at KCM Trade, explained that “the JOLTS job data helped ease some concerns about the potential economic impact of tariffs on the U.S. economy, which is keeping gold’s demand in check.”
Adding to the mixed economic signals, the White House indicated that U.S. President Donald Trump and Chinese President Xi Jinping may hold talks later this week to address the ongoing trade dispute. China’s Foreign Minister Wang Yi also called for the U.S. to create the necessary conditions to restore bilateral relations to a more stable footing.
In terms of economic data, job openings in the United States increased in April, although layoffs surged to their highest level in nine months, suggesting signs of softening in the labor market.
Global economic concerns grew after the Organisation for Economic Co-operation and Development (OECD) issued a warning about a sharper-than-expected economic slowdown, largely due to the impact of U.S. trade policies.
Wong commented that the OECD report is likely to support continued demand for safe-haven assets, including gold, in the medium term.
Federal Reserve officials reiterated their cautious stance on monetary policy, citing risks from ongoing trade tensions and economic uncertainty.
Gold, traditionally seen as a safe-haven asset, tends to perform well in times of economic volatility.
Elsewhere in the precious metals market, silver dipped 0.3% to $34.40 per ounce, platinum rose 0.3% to $1,076.86, and palladium fell 0.9% to $1,001.42.
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