Gold rises on weaker dollar as markets await Fed rate-cut clues

Gold prices rose on Tuesday, supported by a weaker U.S. dollar, as investors awaited labour market data due later this week to assess the Federal Reserve's potential rate-cut trajectory amid renewed calls from U.S. President Donald Trump to lower rates.

FUNDAMENTALS

* Spot gold was up 0.3% at $3,312.25 per ounce, as of 0042 GMT, while U.S. gold futures rose 0.5% to $3,323.10.


* The U.S. dollar index fell 0.2%, hovering near a three-year low, making bullion more affordable for holders of other currencies.

* Trump continued to press the Fed on Monday to ease monetary policy, sending Fed Chair Jerome Powell a list of global central bank interest rates, annotated with handwritten comments urging U.S. rates to align with Japan's 0.5% and Denmark's 1.75%.

* U.S. Treasury Secretary Scott Bessent said Monday that the administration is considering using the next expected Federal Reserve Board of Governors vacancy in early 2026 to appoint a successor to Powell.

* Federal Reserve Bank of Atlanta President Raphael Bostic said Monday that the economy has yet to face the full impact of Trump's trade tariffs and reiterated that he expects one rate cut from the Fed this year.

* Meanwhile, Chicago Federal Reserve Bank President Austan Goolsbee said he sees no signs of stagflation but noted the possibility of both unemployment and inflation worsening simultaneously.

* Investors are closely monitoring a series of labour market reports in this holiday-shortened trading week, culminating in Thursday's government payrolls data, for insights into the Fed's monetary policy direction.

* Meanwhile, Trump expressed frustration with U.S.-Japan trade negotiations on Monday as Bessent warned that countries could be notified of sharply higher tariffs, as a July 9 deadline approaches despite good-faith negotiations.

* The United States will resume trade negotiations with Canada after Ottawa dropped the digital services tax.

* Spot silver edged up 0.1% to $36.13 per ounce, platinum rose 0.7% to $1,362.35, while palladium gained 1.2% to $1,110.03. DATA/EVENTS (GMT) 0030 Japan JibunBK Mfg PMI June 0145 China Caixin Mfg PMI Final June 0600 UK Nationwide house price mm, yy June 0750 France HCOB Manufacturing PMI June 0755 Germany HCOB Mfg PMI June 0755 Germany Unemployment Chg, Rate SA June 0800 EU HCOB Mfg Final PMI June 0830 UK S&P Global Manufacturing PMI June 0900 EU HICP X F, E, A, T Flash YY, MM June 1345 US S&P Global Mfg PMI Final June 1400 US ISM Manufacturing PMI.