Gold prices held steady on Thursday as investors awaited US non-farm payrolls data due on Friday to assess the Federal Reserve's interest rate path, while global trade tensions continued to simmer.
Spot gold was steady at $3,373.69 an ounce, as of 0843 GMT. US gold futures were down 0.1% to $3,397.20.
"I would say that the path of least resistance remains to the upside, despite today's sort of flat mode for gold trading. But I think this is more due to traders being in wait-and-see mode ahead of non-farm payrolls," said Ricardo Evangelista, senior analyst at brokerage firm ActivTrades.
Wednesday's ADP National Employment Report revealed US private payrolls increased far less than expected in May. The more comprehensive non-farm payrolls report on Friday is expected to show that non-farm payrolls increased by 130,000 jobs in May after advancing by 177,000 in April, according to a Reuters survey of economists.
US President Donald Trump on Wednesday called for Fed Chair Jerome Powell to lower interest rates.
"I think that a weakening in the US labor market will increase bets on a dovish Fed, so on the Fed cutting interest rates, (which) would be positive for gold," Evangelista added.
Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment.
Trump described China's Xi Jinping as "tough" and "extremely hard to make a deal with" in a social media post, dampening hopes for a swift end to trade tensions. Meanwhile, his doubling of tariffs on steel and aluminium imports took effect on Wednesday.
"We stick to our price targets of USD 3,350 and USD 3,500 in 3 and 12 months time, reflecting first and foremost continued central bank buying as well as sound demand from safe-haven seekers," said Carsten Menke, analyst at Julius Baer.
Elsewhere, spot silver fell 0.6% to $34.74 an ounce, but hit its highest level since October 2012. Platinum rose 3.6% to $1,123.15, its highest level since April 2023, and palladium was up 1.7% at $1,017.37.
