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Below the Quote on Gold Commentary: 02 July 2025 by Mr. Manav Modi, Senior Analyst, Commodity Research at Motilal Oswal Financial services Ltd 

Gold prices edged lower in early morning trade, as investors awaited U.S. payroll data and assessed Federal Reserve Chair Jerome Powell's cautious stance on rate cuts, although a weaker dollar helped limit losses. Dollar index weakened to its lowest point in more than three years, marked below the 97 mark. USDINR is also hovering slightly below the 86 mark weighing on domestic prices. Governor Powell in his speech yesterday, reiterated that the Fed plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates, again setting aside U.S. President's demands for immediate and deep rate cuts. U.S. job openings unexpectedly increased in May, but a decline in hiring added to signs that the labour market had shifted into lower gear amid uncertainty over the Trump administration's tariffs on imports. Meanwhile, U.S. Senate Republicans narrowly passed Trump's tax-and-spending bill, a package cutting taxes, reducing social safety net programs, and boosting military spending, President Trump expressed optimism about a potential trade deal with India but was skeptical about reaching a similar agreement with Japan. He added that he was not considering an extension of the July 9 deadline for countries to negotiate trade deals. Investors are now awaiting U.S. ADP employment data, due later in the day, and nonfarm payroll figures tomorrow for further insights into labour market conditions.

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