Gold moved lower in early trade below $3,320 as investors looked ahead to the Non-Farm Payrolls (NFP) jobs report that changed expectations for the Fed's next monetary policy setting.
Market participants are ready to see the minutes of the Federal Open Market Committee (FOMC) meeting this week.
At 9:30 am, gold prices were at $3,311.81, down 0.75% since it opened early Monday in Asian trading.
NFP data came in stronger than expected, rising by 147,000 jobs for June from 144,000 in May.
In addition, the Unemployment Rate remained stable at 4.1%, indicating continued labor market resilience and reducing confidence in a near-term Fed rate cut. This continued to support the US dollar and put selling pressure on safe-haven gold.
Gold’s potential resilience was also seen in news of geopolitical tensions in the Middle East, with Israel saying it had struck Houthi targets at three ports and a power plant in Yemen.
Israeli Defense Minister Katz confirmed the strikes came amid ongoing attacks by the Iran-backed rebel group.
For now, gold holders will be closely monitoring developments in tariff policy. US Secretary of State Scott Bessent said that President Donald Trump would send letters to the countries involved if there is no progress in trade talks.
