Gold dipped as the dollar strengthened ahead of US labour data later this week that will help steer the Federal Reserve’s monetary policy.
Bullion declined as much as 0.8% following the biggest daily jump in four weeks on Monday. Labour market indicators including a report on May employment are scheduled to be released on Friday, while investors watch for news on trade negotiations after the US pushed for presidential talks with China.
Despite the modest drop, gold is still up more than a quarter so far this year, with Goldman Sachs Group Inc. saying last week it would remain a hedge against inflation in long-term portfolios, along with oil. The European Union, meanwhile, issued a fresh warning of countermeasures if President Donald Trump follows through on his tariff threats.
There are few signs of a breakthrough on trade negotiations with the two biggest American trading partners, and there are growing concerns over Trump’s policies and their impacts on the global economy. The greenback fell to the lowest level since 2023 on Monday.
Spot gold was 0.5% lower at US$3,364.69 ($4,332.64) an ounce as of 2.28pm in Singapore. The Bloomberg Dollar Spot Index rose 0.1%. Silver fell after hitting the highest since October on Monday. Platinum was flat and palladium slipped.
