Gold flat as dollar firms after US imposes fresh tariffs; jobs data in focus

Gold prices were flat on Friday and is set to log a weekly fall as the dollar crept higher after U.S. President Donald Trump slapped new tariff rates on dozens of countries, while investors awaited U.S. non-farm payrolls data due later in the day.

FUNDAMENTALS

* Spot gold was steady at $3,289.79 per ounce, as of 0127 GMT. Bullion is down 1.4% so far this week.

* U.S. gold futures eased 0.3% to $3,340.20.

* The dollar index rose 0.1% to hover near a two-month peak hit on Thursday, making gold more expensive for other currency holders. * Trump signed an executive order on Thursday imposing “reciprocal” tariffs ranging from 10% to 41% on imports from dozens of countries and foreign locations. * He increased duties on Canadian goods to 35% from 25% for all products not covered by the U.S.-Mexico-Canada trade agreement, but gave Mexico a 90-day reprieve to negotiate a broader deal.
* Asian shares fell on Friday after the U.S. slapped dozens of trading partners with steep tariffs.
* Focus now shifts to U.S. jobs data due later in the day for more cues on Federal Reserve’s rate-cut path after the bank left rates unchanged earlier this week.
* Fed funds futures imply just a 39% chance of a rate cut in September, compared with 65% before the Fed meeting, according to the CME’s FedWatch.

* Gold thrives in a low-interest rate environment as it is a non-yielding asset.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.09% to 954.51 tonnes on Thursday from 955.37 tonnes on Wednesday.

* Spot silver held steady at $37.10 per ounce, platinum fell 0.3% to $1,308.85 and palladium rose 0.9% to $1,216.25. DATA/EVENTS (GMT) 0145 China Caixin Mfg PMI Final July 0600 UK Nationwide house price mm, yy July 0750 France HCOB Manufacturing PMI July 0755 Germany HCOB Mfg PMI July 0800 EU HCOB Mfg Final PMI July 0830 UK S&P GLOBAL MANUFACTURING PMI July 0900 EU HICP Flash YY July 0900 EU HICP-X F, E, A, T Flash MM, YY July 1230 US Non-Farm Payrolls, Unemployment Rate July 1230 US Average Earnings YY July 1345 US Average Earnings YY July 1400 US ISM Manufacturing PMI, U Mich Sentiment Final July.