Select Language

Gold Price Forecast: XAU/USD loses ground to near $3,350, weaker US jobs data might cap downside

Breaking news

Gold Price Forecast: XAU/USD loses ground to near $3,350, weaker US jobs data might cap downside

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
update 2025.08.04 09:15
Gold Price Forecast: XAU/USD loses ground to near $3,350, weaker US jobs data might cap downside

update 2025.08.04 09:15

  • Gold price drifts lower to near $3,360 in Monday's early Asian session. 
  • The recovery in the USD weighs on the precious metal.
  • Weaker US NFP and tariff fears could boost safe-haven assets like the Gold price. 

The Gold price (XAU/USD) edges lower to around $3,360, snapping the two-day winning streak during the early Asian session on Monday. Nonetheless, weak US job data and tariff fears might weigh on the US Dollar (USD) and help limit the USD-denominated commodity's losses. 

The yellow metal loses traction due to the rebound in the Greenback. The potential upside for Gold might be limited as an underwhelming US Nonfarm Payrolls (NFP) data boosted expectations of a Federal Reserve (Fed) rate cut. 

The US NFP rose by 73,000 in July, versus a 14,000 increase (revised from 147,000) prior, the US Bureau of Labor Statistics (BLS) revealed on Friday. This figure came in below the market consensus of 110,000. Meanwhile, the US Unemployment Rate ticked higher to 4.2% in July from 4.1% in June, as expected.

"Payrolls numbers came in below expectations, but a little higher than the market was printing. So, this gives a better probability that the Federal Reserve will cut (rates) later in the year," said Bart Melek, head of commodity strategies at TD Securities.

Furthermore, fresh tariff announcements and uncertainty over US trade policies spur safe-haven demand. On Friday, US President Donald Trump hit many countries with new levies, causing shock and confusion. Investors will closely monitor the developments surrounding US tariffs announcement. 

Trump and Canadian Prime Minister Mark Carney will likely talk "over the next number of days" after the U.S. imposed a 35% tariff on goods not covered by the US-Mexico-Canada trade agreement. Tariff pause extension between the US and China, the world's two largest economies, will also be closely watched. Any signs of renewed trade tensions could boost the precious metal. 

Gold FAQs

Gold has played a key role in human's history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn't rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country's solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.


Date

Created

 : 2025.08.04

Update

Last updated

 : 2025.08.04

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

EUR/USD surges above 1.17 as Powell hints at September Fed cut

EUR/USD skyrockets during the North American session after Federal Reserve (Fed) Chairman Jerome Powell leaned dovish at his Jackson Hole speech, opening the door for a resumption of the easing cycle. The pair trades at 1.1718, up by 0.97%.
New
update2025.08.23 06:25

Dow Jones Industrial Average hits record highs after dovish Powell appearance

The Dow Jones Industrial Average (DJIA) soared to new all-time highs on Friday, testing above 45,700 for the first time since the index's inception.
New
update2025.08.23 03:45

Gold climbs as Powell flags rising labor risks, dovish Fed tilt

Gold prices continue to trend higher on Friday after the Federal Reserve (Fed) leaned dovish, as commented by the Fed Chair Jerome Powell, who said that "downside risks to the labor market are rising." XAU/USD trades at $3,371 after hitting a daily low of $3,321.
New
update2025.08.23 03:44

USD/CHF tumbles as Powell's Jackson Hole remarks trigger US Dollar selloff

The Swiss Franc (CHF) surges against the US Dollar (USD) on Friday after Federal Reserve (Fed) Chair Jerome Powell's remarks at the Jackson Hole Symposium triggered a broad-based Greenback selloff.
New
update2025.08.23 03:31

NZD/USD rebounds from four-month low as Powell's Jackson Hole remarks sink US Dollar

The New Zealand Dollar (NZD) strengthens against the US Dollar (USD) on Friday, with NZD/USD rebounding from its lowest level since April 11 as traders reacted to Federal Reserve (Fed) Chair Jerome Powell's cautious remarks at the Jackson Hole Economic Symposium.
update2025.08.23 00:37

USD/CAD slides as Powell turns dovish, Canadian Retail Sales beat

The USD/CAD tumbles over 0.49% during the North American session as the Fed Chair Jerome Powell leans dovish and strong Canadian Retail Sales, boosted the Loonie. At the time of writing, the pair trades at 1.3835 after hitting a daily high of 1.3924.
update2025.08.23 00:21

USD/JPY retreats from three-week high as Powell's remarks amplify September rate cut bets

The Japanese Yen (JPY) advanced strongly against the US Dollar (USD) on Friday, with USD/JPY retreating from an intraday high of 148.78 to trade near 146.66, down almost 1% on the day.
update2025.08.23 00:05

EUR/USD jumps above 1.1700 on Powell's dovish words

The US Dollar (USD) collapsed as Federal Reserve (Fed) Chair Jerome Powell delivered his speech at a Jackson Hole Symposium, with EUR/USD peaking at 1.1707, up roughly 100 pips in the last few minutes.
update2025.08.22 23:47

GBP/USD jumps past 1.3500 as Powell leans dovish

The GBP/USD rallies as the Fed Chair Jerome Powell takes the stand at the Jackson Hole Symposium. At the time of writing, the pair trades above 1.3500 after Powell hints that the Fed might be ready to resume its easing cycle.
update2025.08.22 23:46

Silver extends rally as Powell's Jackson Hole remarks boost Fed cut bets

Silver (XAG/USD) rallies sharply on Friday, rebounding from an intraday low of $37.70 to trade near $38.70, up around 1.40% on the day.
update2025.08.22 23:40

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel