PRECIOUS-Gold little changed as traders await US payroll data for economic clues

By Anmol Choubey

June 5 (Reuters) - Gold prices were little changed on Thursday as investors assessed weaker-than-expected U.S. data and ongoing global economic and political uncertainties, while looking ahead to U.S. payroll data due a day later for further cues.

Spot gold XAU= edged down 0.3% to $3,365.73 an ounce, as of 0611 GMT. U.S. gold futures GCcv1 were down 0.3% to $3,388.90.

At this stage, minor fluctuations in prices do not determine the overall direction, as gold continues to hold up relatively well, said ANZ Commodity Strategist Soni Kumari.

Federal Reserve reported a slowdown in U.S. economic activity, citing rising costs and prices driven by increased tariff rates since the last policy meeting.

The U.S. services sector contracted in May for the first time in nearly a year.

The ADP National Employment Report revealed U.S. private employers added the fewest workers in over two years in May, ahead of Friday's nonfarm payrolls data.

U.S. President Donald Trump described Chinese President Xi Jinping as "extremely hard to make a deal with" and reiterated his call to Federal Reserve Chair Jerome Powell to cut interest rates.

Trump's doubling of tariffs on steel and aluminum imports took effect, with his administration seeking "best offers" from trade partners to avoid further levies slated for July.

"Gold finds itself in a holding pattern and at the whim of Trump's trade headlines — supported, yet hesitant to trade above this week's high," said Matt Simpson, a senior analyst at City Index.

Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment.

Elsewhere, spot silver XAG= fell 1.4% to $34.47 an ounce, platinum XPT= rose 0.4% to $1,089.41 and palladium XPD= was down 0.4% at $997.19.