What is supporting gold prices ahead of US jobs data

Gold prices edged higher on Tuesday (July 1), lifted by a falling US dollar and growing concerns over US trade tariffs. Investors turned to the yellow metal as a safe haven ahead of key economic and policy triggers.

Spot gold rose 0.6% to $3,322.55 per ounce in early Asian trade, while US gold futures climbed 0.8% to $3,334.80 an ounce.

In India, 24-karat gold is priced at ₹98,400 per 10 grams.

For 22-karat, the rate stood at ₹90,200, and 18-karat gold traded at ₹73,800 per 10 grams, as per Goodreturns data.

The US dollar index dropped 0.2%, hitting a 43-month low. A weaker dollar makes gold cheaper for other currency holders, supporting global demand.

"Expectations of US rate cuts and a drop in the dollar are pushing gold higher," said Rahul Kalantri, VP Commodities at Mehta Equities Ltd. He added that short covering and bargain buying also contributed to the rebound from recent lows.

Political and policy uncertainty lend support

Markets are jittery ahead of the July 9 deadline for new US tariffs. US President Trump has warned of sharp increases unless trade deals are reached.

At the same time, he has pushed the Federal Reserve for lower interest rates.

Analysts say any aggressive Fed easing could drive further upside in gold.

"Gold prices appear to have stabilissed and are gradually climbing," said Aksha Kamboj, Vice President, India Bullion and Jewellers Association. "Expectations of deeper rate cuts and safe-haven demand due to geopolitical tensions are driving sentiment."

Key levels to watch

Gold faces resistance at ₹96,480–₹96,750 per 10 grams and support at ₹95,810–₹95,580 per 10 grams. ly, support lies at $3,285–$3,265 an ounce, while resistance is at $3,335–$3,355 an ounce.

What lies ahead

Market participants are closely tracking US jobs data due Thursday (July 3), which could influence the Fed’s policy direction. Any signs of economic weakness may strengthen the case for interest rate cuts, boosting gold further.

With strong central bank buying and resilient domestic demand, analysts expect gold to maintain an upward bias in the near term.

-With Reuters inputs