Gold Slips as Stronger Dollar and Jobs Data Weigh on Sentiment

​Gold prices edged lower on Tuesday as a strengthening U.S. dollar and upcoming labor market data put pressure on the precious metal after a brief rally.

Spot gold fell 0.5% to $3,364.69 an ounce in Singapore, giving back gains from Monday’s surge—its biggest one-day jump in nearly a month. August futures also dipped, as investor focus shifted toward the U.S. jobs report due Friday, which could influence the Federal Reserve’s rate path.

The dollar ticked higher, rising 0.1% against a basket of major currencies, making gold more expensive for foreign buyers and capping demand. The rebound in the greenback came after it hit a two-year low earlier in the week.

Despite the dip, gold remains up more than 25% in 2025, buoyed by persistent inflation fears, global economic uncertainty, and concerns over President Trump’s trade policies. The European Union recently warned it would respond with countermeasures if Trump proceeds with proposed 50% tariffs, adding another layer of tension to global markets.

Goldman Sachs reaffirmed its bullish stance on the metal, calling it a key long-term hedge alongside oil in inflation-sensitive portfolios. Still, in the short term, gold is likely to remain sensitive to macroeconomic data and central bank rhetoric.

​Bottom line: Gold pulled back as the dollar firmed and traders await fresh signals from the U.S. labor market. But with inflation concerns and trade tensions far from resolved, gold’s long-term appeal remains intact.