Investing.com-- Gold prices fell slightly in Asian trade on Thursday, pulling back marginally from strong gains in the prior session as soft U.S. labor data and uncertainty over trade policy kept haven demand strong.

A raft of middling economic readings from Asia also kept gold well-bid, while weakness in the dollar, amid growing bets that the Federal Reserve will cut interest rates further this year, kept broader metal prices upbeat.

Spot gold fell 0.1% to $3,368.61 an ounce, while gold futures for August fell 0.2% to $3,382.65/oz by 01:18 ET (05:18 GMT).

Gold holds weekly gains amid economic, trade uncertainty

Gold was sitting on a 2.4% so far this week, with its latest gains coming after ADP payrolls data, a gauge of private U.S. payrolls, read substantially weaker than expected for May.

The print pointed to a sustained cooling in the U.S. labor market, which in turn ramped up bets that the Federal Reserve will cut interest rates further this year.

The ADP data also came just before nonfarm payrolls data due this Friday, which is expected to read much lower for May than the prior month.

Signs of a cooling labor market added to uncertainty over the U.S. economy, especially as Trump signaled that he will push forward with his tariff agenda despite legal challenges.

Trump had doubled his tariffs on steel and aluminum this week, while a Wednesday deadline for U.S. trading partners to submit their “best offers” for a trade deal also appeared to have passed with no new agreements being announced.

Focus is now on a potential call between Trump and Chinese President Xi Jinping expected to take place this week, although neither Beijing nor Washington have provided any more information on the potential call.

Geopolitical jitters also underpinned gold demand, after increased military action between Russia and Ukraine dented expectations for a U.S.-brokered ceasefire.

Dollar weakness benefits broader metal prices

Broader metal prices mostly retreated on Thursday, but were sitting on strong gains this week as they benefited from a softer dollar.

The greenback was nursing a 0.4% drop so far this week, and was close to a six-week low.

Weakness in the dollar benefited most metals and other commodities priced in the greenback, although they did see some easing on Thursday.

Silver futures were flat at $34.640/oz, while platinum futures rose 0.3% to $1,089.65/oz. But both metals were up between 3% to 5% this week.

Among industrial metals, benchmark copper futures on the London Metal Exchange fell slightly to $9,631.75 a ton, while U.S. copper futures fell 0.2% to $4.8890 a pound.