Gold Prices Hold Steady as ECB Cuts Rates and US Jobless Claims Rise

Gold Prices Hold Steady as ECB Cuts Rates and US Jobless Claims Rise

Safe-Haven Demand Buoyed by Economic and Geopolitical Risks

Gold prices (XAU/USD) remained supported on Thursday, holding above $3,370 after briefly testing the $3,400 psychological resistance. The European Central Bank (ECB) announced a 25 basis-point rate cut, reinforcing market expectations for further easing globally, which typically benefits non-yielding assets like Gold.

US Jobless Claims Hint at Softening Labor Market

Adding to Gold’s tailwinds, US Jobless Claims rose more than expected, reinforcing concerns about the health of the US labor market ahead of Friday's Nonfarm Payrolls (NFP) report. The increase in claims highlights a possible slowdown in hiring, fueling investor worries about the trajectory of the US economy.

Geopolitical Focus: Trump-Merz Meeting

Markets are also eyeing the upcoming meeting between US President Donald Trump and German Chancellor Friedrich Merz, where global trade and security will dominate discussions. With EU-US trade policies hanging in the balance, safe-haven flows into Gold may persist as investors hedge against uncertainty.

Key Takeaways:

• Gold stabilizes after testing $3,400
• ECB cuts interest rates by 25 bps
• US Jobless Claims rise before NFP
• Trump-Merz meeting may influence trade dynamics

More from Tredu:

• What ECB’s Rate Cut Means for Gold
• Why Safe-Haven Assets Are Back in Focus
• US Dollar Outlook After Jobless Claims Rise