Gold Prices Rise as Investors Await U.S. Jobs Data

Gold prices climbed on Wednesday (March 5, 2025), driven by a weaker U.S. dollar. Investors are now focusing on the upcoming U.S. employment data, which could provide a clearer outlook on the Federal Reserve's monetary policy direction.

This data will also play a crucial role in determining whether gold prices can reach the US$ 3,000 per ounce level.

According to CNBC International, spot gold prices edged up 0.03% to US$ 2,919.1 per ounce, while U.S. gold futures gained 0.2% to US$ 2,927.5 per ounce.

Meanwhile, the U.S. dollar index dropped 1.2% to its lowest level since November. A weaker dollar makes gold more affordable for investors using other currencies, boosting demand for the precious metal.

“Gold buying interest remains strong at the moment. However, investors are cautious ahead of Friday’s labor market data release. Still, the long-term trend for gold remains positive,” said Peter Grant, Vice President and senior metals analyst at Zaner Metals.

Grant further noted that the recent rise in gold prices is primarily driven by the dollar's weakness.

Trump’s Tariff Policies Boost Gold Demand

In addition to the dollar’s decline, President Donald Trump’s trade tariff policies have also fueled increased demand for gold as a safe-haven asset. Since the beginning of the year, gold prices have hit record highs 11 times, peaking at US$ 2,956.15 on February 24, 2025. Overall, gold prices have gained 11% year-to-date.

During his Congress address on Tuesday night (March 4, 2025), Trump announced plans to impose additional tariffs starting April 2, 2025. The policy includes retaliatory tariffs and other non-tariff measures aimed at reducing the U.S. trade deficit.

Earlier, on Tuesday, the U.S. government had already implemented a 25% tariff on most imports from Mexico and Canada, while also raising tariffs on Chinese goods to 20%.

Meanwhile, the ADP National Employment report indicated that U.S. private-sector job growth slowed in February. Reuters economists forecast that the upcoming nonfarm payrolls report, set for release on Friday (March 7, 2025), will show 160,000 new jobs added.

According to Daniel Pavilonis, a senior analyst at RJO Futures, the impact of the employment data on gold prices will depend on the results:

“If the jobs report is weak, gold prices may decline. If the report is neutral, there won’t be much impact. However, if the data is strong, gold could surge quickly toward US$ 3,000 or even higher,” he explained.

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