Investing.com– Gold prices steadied in early Asian trade on Thursday as markets awaited key U.S. labor data for more cues on interest rates amid growing expectations for a hike this year.
Bullion hovered above its weakest levels for the year, after logging its worst quarterly drop in 13 years in the June quarter.
rose 0.3% to $4,043.23 an ounce by 20:40 ET (00:40 GMT), while fell 0.7% to $4,054.67/oz.
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While the yellow metal did recover after sliding below $4,000/oz on Wednesday, gains were limited by persistent concerns over higher U.S. interest rates.
Federal Reserve Chair Kevin Warsh on Wednesday signaled that the central bank will firmly follow its 2% inflation target and disappoint anyone who expects loose monetary policy.
His comments pointed to an increasingly hawkish tilt in the Fed– a notion that has weighed heavily on gold prices in recent months.
Markets are pricing in at least one rate hike by the Fed in 2026, amid increasing anxiety over sticky U.S. inflation. High energy prices drove sharp increases in inflation over the past three months.
While energy prices have since cooled, markets have remained on edge over persistent inflation, with rising chip prices presenting another risk for price pressures.
data for June, due later on Thursday, is also expected to factor into the Fed’s plans for interest rates. Inflation and labor strength are the central bank’s two main considerations.
Other precious metals steadied on Thursday after also logging deep losses in the June quarter. rose 0.2% to $59.2600/oz, while rose 0.1% to $1,582.94/oz.