AGE Daily Gold Update

AGE Daily Gold Update presents a recap on today's action in the precious metals markets. View archives.

7/2/2025: Gold rises on weak jobs data

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold gained 0.3% to close at $3,348 after private payrolls contracted in June, perhaps putting the Fed on a path to lower interest rates sooner than expected. Silver jumped 1% to finish at $36.43 an ounce.

ADP reported privately run businesses cut 33,000 jobs in June as the worst trade wars since the 1930s are creating "hesitancy to hire and reluctance to replace" departing employees. It was the first net loss of jobs in more than two years.

Although Fed Chair Jerome Powell said this week that the central bank will take a patient approach to rate cuts because of uncertainty surrounding US trade and tariff policies, he also suggested that the rate cut in July is not off the table.

If the upcoming and more-authoritative US nonfarm payrolls data reflect a deterioration in the labor market, the Fed may well be moved to lower rates. Fed fund futures now put the odds of a quarter-point reduction at 24%, up from 20% before the ADP release.

Lower rates typically weaken the dollar and lower Treasury yields, making gold more attractive to overseas buyers and reducing the opportunity cost for holding it instead on bonds for safety.

Meanwhile, the House will try to pass the Senate's version of the Trump tax-cut and spending bill, which will add $3.3 trillion to the US deficit over the next decade.

Platinum and palladium rose 5.6% and 5.3%, respectively.

At the New York spot close: gold gained $11.30 to $3,348; silver climbed 35 cents to $36.43; platinum picked up $75.10 to $1,421; and palladium advanced $58.10 to $1,161 an ounce.