Spot gold rallies bullishly

During the European session on Thursday (June 5), spot gold edged higher in a modest rebound. At the time of writing, gold was trading at $3,378.99 per ounce, up 0.19%. The price hit an intraday high of $3,383.91 and a low of $3,360.88 per ounce.

The ADP employment report released on Wednesday showed the U.S. private sector added just 37,000 jobs in May, the lowest since February 2021 and well below market expectations of 115,000. Meanwhile, the ISM Services PMI unexpectedly fell to 49.9, marking the first time it dropped below the 50 threshold (indicating contraction) since June 2024.

Bank of America Global Economic Research analysis:
"With simultaneous softening in both services sector and employment data, markets have begun pricing in two Fed rate cuts for 2025."

Trump Urges Immediate Fed Rate Cuts in Truth Social Post, Criticizes Powell's "Slow Action"

Former President Donald Trump took to Truth Social to once again pressure Federal Reserve Chair Jerome Powell, demanding an "immediate rate cut" and accusing the central bank of moving too slowly. "Europe has already cut rates nine times," he noted, implying the Fed is lagging behind other major central banks in monetary easing.

UK Data Shows Marginal Improvement, Moderate Economic Recovery Supports Pound Sterling.

S&P Global data shows the UK's composite PMI rose to 50.3 in May, ending a previous streak of contraction, while the services PMI also rebounded to 50.9, indicating a return to growth in the sector. These figures have strengthened expectations that the UK economy may avoid a recession.