The yellow metal fell 0.80% after a strong Non-Farm Payrolls (NFP) report gave the greenback a boost, leaving market participants less confident that the Fed will cut interest rates for its July meeting.
At 9:30 am, gold was at $3,329.93, up 0.11% since it opened in early trading on Thursday in the Asian session.
The US jobs report for June was weaker than expected but still above May's figure. The unemployment rate fell below the 4% threshold, indicating that the labor market remains strong.
The data raised questions about Wednesday's ADP data, which showed private companies cut hiring by 33,000.
As a result, the USD's position rose, supported by a surge in US Treasuries, fueling expectations of two rate cuts by the end of 2025.
In addition, US Treasury Secretary Scott Bessent announced that more trade talks were coming, especially regarding the agreement with Vietnam.
He added that the Fed is now on the brink of a crisis as the Donald Trump administration is expected to replace Jerome Powell.
The US House of Representatives, which passed the ‘Big Beautiful Bill’, is now in its final stages and the fiscal budget is expected to increase the US debt by $3.3 trillion over the next decade.
