AGE Daily Gold Update

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

7/3/2025: Gold slips on Fed rate view

Source: Bill Musgrave, American Gold Exchange

Austin — New York spot gold slipped 0.5% to close under $3,332 after stronger-than-expected jobs data dimmed the prospects for imminent rate cuts from the Fed, boosting the dollar and pressuring alternative stores of value. Bullion still rose 1.7% for the holiday-shortened week. Silver climbed 1% to $36.78 for a weekly rise of 1.9%.

US nonfarm payrolls added 147,000 jobs in June, handily exceeding consensus forecasts of around 110,000 and pushing the unemployment rate down to 4.1% from 4.2% in May.

While the headline numbers were solid, the details were softer. Nearly half the gains came from the government sector while the private sector added only 74,000 jobs, the fewest in eight months. And the lowered unemployment rate was attributed to more jobseekers giving up.

Still, the overall resiliency evident in the report makes it unlikely that the Fed will start cutting interest rates when it meets later this month, and more likely that rates will remain elevated through 2025. Fed fund futures traders now project 51 basis points in cuts this year, down from 66 before the NFP print.

In addition, the ISM reported the services sector nudged back into expansion in June after contracting in May. Service industries constitute around 70% of the economy.

Benchmark 10-year Treasury yields climbed above 4.35% on the dimming rate view, pressuring gold by increasing the opportunity cost for holding it instead of bonds for safety.

Tracking higher with yields, the dollar added 0.4% against major rivals. A weaker dollar weighs on gold and other commodities by making them more expensive in other currencies, limiting demand overseas.

Platinum fell 3.4% today but gained 2.3% this week. Palladium shed 1.3% but managed a weekly rise of 0.2%.

At the New York spot close: gold slipped $16.40 to $3,331.60; silver climbed 36 cents to $36.78; platinum dropped $49 to $1,372; and palladium lot $15 to $1,146 an ounce.