Gold steadies as investors eye US payroll data, assess Fed signals

Gold prices held steady on Wednesday as investors awaited U.S payroll data and weighed Federal Reserve Chair Jerome Powell's cautious stance on rate cuts, while a softer dollar and the passage of a U.S. tax-and-spending bill provided support.

FUNDAMENTALS

* Spot gold was stable at $3,338.22 per ounce, as of 0036 GMT, while U.S. gold futures were unchanged at $3,347.80.


* The U.S. dollar index weakened to its lowest point in more than three years, making greenback-priced bullion more affordable for holders of other currencies.

* U.S. Senate Republicans narrowly passed U.S. President Donald Trump's tax-and-spending bill on Tuesday, a package cutting taxes, reducing social safety net programmes, and boosting military spending, while adding $3.3 trillion to the national debt.

* Meanwhile, the U.S. could reach a trade deal with India that would help American companies compete in the South Asian country and leave it facing far lower tariffs, Trump said, while casting doubts on a possible deal with Japan.

* Trump added he was not considering an extension of the July 9 deadline for countries to negotiate trade deals.

* Powell reiterated that the U.S. central bank plans to "wait and learn more" about the impact of tariffs on inflation before lowering interest rates, again setting aside Trump's demands for immediate and deep rate cuts.

* Trump emphasized he has two or three top choices to replace Powell as Fed Chair.

* 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, with a 90-day pause on higher reciprocal duties drawing to an end.

* Investors are now awaiting U.S. ADP employment data on Wednesday and Thursday's payroll figures for further insights into labour market conditions.

* Spot silver held steady at $36.07 per ounce, platinum rose 0.7% to $1,359.78, while palladium gained nearly 1% to $1,108. DATA/EVENTS (GMT) 0900 EU Unemployment Rate May.