Gold (XAU/USD) prices held firm in Asian trading on Monday, maintaining momentum from Friday’s sharp rally as weak U.S. labour data and deepening global trade tensions under President Donald Trump reinforced safe-haven demand.
Spot gold was trading at $3,354.60 an ounce by 09:00 GMT, steady after rising more than 2% in the previous session. The jump helped gold erase earlier weekly losses and post its first weekly gain in three weeks.
Friday’s nonfarm payrolls report showed just 73,000 jobs added in July, well below expectations, with downward revisions to May and June. The unemployment rate edged up to 4.2%, fuelling concern over a cooling U.S. economy.
Markets now price in a roughly 90% chance of a Federal Reserve rate cut in September. The dollar slid after the data, while Treasury yields fell, both of which helped drive gold higher.
On the geopolitical front, gold found additional support as President Trump advanced new tariffs on imports from Canada, Brazil, India, and Taiwan. The measures have reignited concerns over inflation and trade disruption.
Against this backdrop of economic uncertainty and policy tension, gold continues to attract demand as a defensive asset.