Gold stays on the back foot ahead of U.S. jobs data

July 01, 2026 (MLN): Gold prices continued to slide on Wednesday, extending losses after touching a seven-month low in the previous session, as rising U.S. Treasury yields and a stronger dollar reduced the appeal of the non-yielding metal.

Currently, spot gold is down 1.25% to $3,967.43 an ounce as of [12:40 pm] PST, according to data reported by Mettis Global.

Meanwhile, diminishing hopes for a lasting diplomatic resolution between the United States and Iran kept inflation concerns alive, reinforcing expectations that the Federal Reserve could tighten monetary policy further.

Bullion ended the second quarter with its sharpest quarterly decline since 2013 and registered a fourth straight monthly loss in June.

Persistent geopolitical tensions in the Middle East have fueled inflationary pressures, prompting investors to reassess the likelihood of additional interest-rate increases by the U.S. Federal Reserve, according to CNBC.

It noted that higher Treasury yields and a firmer U.S. dollar remain the primary drivers behind gold's weakness.

As the dollar strengthens, gold becomes more expensive for buyers using other currencies, while elevated bond yields increase the opportunity cost of holding non-interest-bearing assets such as bullion.

Investors are now awaiting the release of the U.S. June ADP private employment report later on Wednesday, followed by the closely watched nonfarm payrolls data on Thursday, both of which could provide fresh guidance on the Fed's policy direction and influence gold prices.

Meanwhile, oil prices edged higher after Iran signaled it would not hold talks with senior U.S. officials who had traveled to the region following the latest escalation in hostilities, reducing optimism for an immediate diplomatic breakthrough.

Among other precious metals, spot silver fell 1.4% to $57.75 per ounce, platinum eased 0.6% to $1,542 per ounce after touching its lowest level since November, while palladium slipped 0.4% to $1,199.34 per ounce.

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