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
New 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

Japan's Akazawa: US-Japan trade deal isn't a legally binding commitment

Japanese Economy Minister and chief trade negotiator,Ryosei Akazawa, said on Monday that the lastest announced trade agreement between the United States (US) and Japan is not a legally binding commitment.
New
update2025.08.04 12:29

Silver Price Forecast: XAG/USD flat lines around $37.00; bearish potential seems intact

Silver (XAG/USD) struggles to capitalize on Friday's modest recovery gains and oscillates in a range at the start of a new week as softer US NFP-inspired US Dollar (USD) selling now seems to have abated.
New
update2025.08.04 12:19

USD/CAD struggles near 1.3750 due to improved Oil prices

USD/CAD remains subdued for the second successive session, trading around 1.3770 during the Asian hours on Monday. The pair faces challenges as the commodity-linked Canadian Dollar (CAD) receives support from the slight increase in crude Oil prices.
New
update2025.08.04 12:13

Japanese Yen drifts lower as USD stalls Friday's softer US NFP-inspired steep decline

The Japanese Yen (JPY) attracts some sellers at the start of a new week and stalls its sharp recovery move from a four-month low touched against its American counterpart on Friday.
New
update2025.08.04 11:55

Australian Dollar remains steady following TD-MI Inflation Gauge data

The Australian Dollar (AUD) advances against the US Dollar (USD) on Monday, extending its gains for the second successive trading day. The AUD/USD pair gained ground following the release of Australia's inflation gauge data.
New
update2025.08.04 11:48

NZD/USD softens to near 0.5900 ahead of China's trade deadline 

The NZD/USD pair tumbles to near 0.5915 during the Asian trading hours on Monday. Tariff uncertainty between the United States (US) and China weighs on the China-proxy Kiwi. The downside might be limited due to a dismal US jobs report and rising September Federal Reserve (Fed) rate cut bets.
New
update2025.08.04 11:14

EUR/USD falls to near 1.1550 despite a dovish tone surrounding Fed policy outlook

EUR/USD depreciates after registering around 1.5% gains in the previous session, trading around 1.1560 during the Asian hours on Monday. The pair loses ground as the US Dollar (USD) recovers its losses of the prior trading day.
New
update2025.08.04 10:24

WTI tumbles to below $66.50 after OPEC+ agrees to another bumper output boost

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $66.35 during the early Asian trading hours on Monday. The WTI edges lower after the Organization of Petroleum Exporting Countries and allies (OPEC+) approved another increase in oil production, raising oversupply concerns.
New
update2025.08.04 10:18

PBOC sets USD/CNY reference rate at 7.1395 vs. 7.1496 previous

On Monday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.1395 as compared to Friday's fix of 7.1496 and 7.1774 Reuters estimate.
New
update2025.08.04 10:15

GBP/USD slides closer to mid-1.3200s, downside seems limited ahead of BoE this week

The GBP/USD pair struggles to capitalize on Friday's solid bounce from the 1.3140 area, or its lowest level since May 12, and kicks off the new week on a softer note.
New
update2025.08.04 09:51

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