Gold Retreats as Dollar Recovers Ahead of US Job Market Figures

Gold dipped as the dollar recovered ahead of US labor data later this week that will help steer the Federal Reserve’s monetary policy, Bloomberg reported.

Bullion declined as much as 0.9%, after seeing the biggest daily jump in four weeks on Monday. Job indicators including a report on May employment are scheduled to be released on Friday, while markets monitor US trade negotiations.

Gold is up more than a quarter this year, bolstered by safe haven demand as investors flee assets exposed to an expanding trade war, with few signs of a breakthrough. China claimed the US “seriously undermined” a recent truce, and the European Union warned of fresh countermeasures if President Donald Trump follows through on his tariff threats.

Last week Goldman Sachs Group Inc. said investors should turn to gold, alongside oil, as a hedge against inflation in long-term portfolios, citing the appeal of bullion as a haven amid concerns over US institutional credibility and crude’s ability to protect against supply shocks.

Spot gold was 0.7% lower at $3,358.76 an ounce as of 10:50 a.m. in London. The Bloomberg Dollar Spot Index edged up 0.2%, after falling to the lowest level since 2023 on Monday. Silver, platinum and palladium also fell.