Gold prices fell in European trade on Wednesday for the first time in three days under pressure from the stronger dollar.
The dollar held its ground above three-year lows after US job opportunities data, which rose in May, with traders awaiting more crucial labor data later on.
The Price
Gold prices fell 0.35% today to $3327 an ounce, with a session-high at $3345.
On Tuesday, gold prices rose 1.1% away from recent five-week lows at $3247.
US Dollar
The dollar index rose .3% on Wednesday away from three-week lows at 96.38, on track for the first profit in eight days.
Recent US data showed job opportunities rose to 7.77 million by the end of May, beating estimates of 7.32 million.
The data showcases the flexibility of the US labor market ahead of new crucial private sector and government payrolls data this week.
Federal Reserve Chair Jerome Powell said the bank would’ve cut interest rates if it weren’t for President Trump’s tariff plans.
In response to a question at the European Central Bank Forum in Portugal, he said the Fed paused its moves on interest rates when it saw the size of the tariffs, with inflation forecasts rising after their announcement.
Markets are also monitoring US President Trump’s big tax bill, which passed the Senate and headed to the House, and is expected to add $3.3 trillion to total government debt.
US Rates
Investors interpreted Fed Chair Jerome Powell’s last week Congressional testimony as leaning cautious, after saying that rate cuts are likely if inflation doesn’t rise this summer in response to tariffs.
According to the Fedwatch tool, the odds of a Fed 0.25% interest rate cut in July stood at 20%.
The odds of such a cut in September stood at a much better 93%.
SPDR
Gold holdings at the SPDR Gold Trust fell 4.3 tons yesterday to a total of 948.23 tons, the lowest since June 18.
