On COMEX, gold was trading at $4,065.30 per ounce, down 17.10 points or 0.42%. The metal moved in a range of $4,042.80 to $4,080.50 an ounce during the session, indicating that prices remained broadly steady despite mild profit-booking.
Silver prices also edged lower, with COMEX Silver trading at $60.345 per ounce, down 0.27%. The metal touched an intraday high of $60.625 and a low of $59.415 an ounce.
Markets cautious ahead of key US data
Precious metals saw limited downside as investors awaited the release of the US non-farm payrolls report and unemployment data later in the day. The numbers are expected to offer fresh clues on the strength of the American economy and the Federal Reserve’s next policy move.
Market sentiment was influenced by softer-than-expected US private employment data released earlier this week. The ADP report showed private hiring increased by 98,000 jobs in June, below economists’ expectations of 118,000.
The weaker labour reading supported bullion prices by raising concerns that economic growth may be slowing.
Oil prices, Fed outlook in focus
Gold also found some support from lower crude oil prices after indirect talks between Iran and the United States reduced immediate concerns over supply disruptions in the Strait of Hormuz.
Lower oil prices can ease inflationary pressures, potentially reducing the need for aggressive interest-rate hikes by the US Federal Reserve.
However, expectations of tighter monetary policy continue to limit strong upside in gold. Traders are currently pricing in around a 64% chance of a September rate hike, according to CME FedWatch estimates.
Higher interest rates typically weigh on gold because bullion does not provide interest income, making it less attractive compared to yield-bearing assets.
Precious metals hold firm despite mild pressure
Despite the slight decline in prices, analysts said the broader trend in precious metals remains supported by uncertainty over global growth, inflation and central bank policy.
Silver, platinum and palladium also remained relatively firm, reflecting continued investor interest in the precious metals segment ahead of major economic cues from the United States.
-With Reuters inputs
