Gold prices moved slightly in Asian trading on Wednesday, still under pressure due to a rebound in the dollar. Traders continued to worry about the prospect of slower monetary easing in 2025.

- Strong U.S. data released overnight bolstered expectations of a possible slowdown in interest rate cuts, especially with increasing signs that the labor market remains strong. Treasury yields rose sharply on Tuesday, while the dollar recovered from one-week lows.

- Gold did not see significant demand as a haven, even as the escalating rhetoric between the U.S. and China raised concerns about a global trade war, especially as incoming President Donald Trump prepares to impose additional tariffs on China.

- Spot gold steadied at $2,649.47 per ounce, while gold futures expiring in February fell by 0.1% to $2,662.24 per ounce.

Markets are awaiting the upcoming December nonfarm payrolls data, which is expected to provide clearer signals about the labor market this week.

- Strong December purchasing managers' index data also raised concerns about persistent inflation. The ongoing inflation and strength in the labor market are expected to provide the Federal Reserve with less impetus to cut interest rates, as the bank had warned during its December meeting.

- Longer high interest rates threaten gold and metal markets, as they increase the opportunity cost of investing in non-yielding assets.

- On the other hand, platinum futures fell by 0.2% to $973.60 per ounce, while silver futures dropped by 0.1% to $30.663 per ounce.

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