💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

PRECIOUS-Gold slips on firmer dollar; U.S. jobs data eyed for cues

Published 03/09/2015, 04:45 pm
Updated 03/09/2015, 04:47 pm
© Reuters. PRECIOUS-Gold slips on firmer dollar; U.S. jobs data eyed for cues
XAU/USD
-
XAG/USD
-
PA
-
PL
-

* Bullion dips for second day as U.S. jobs data awaited

* Higher dollar also hurts gold

* China markets closed for public holiday

* Coming up: U.S. Weekly jobless claims at 1230 GMT (Updates prices)

By A. Ananthalakshmi

SINGAPORE, Sept 3 (Reuters) - Gold added to overnight losses on Thursday, hurt by a stronger dollar and as investors awaited a key U.S. jobs report to gauge the timing of a Federal Reserve rate hike.

Spot gold XAU= had eased 0.1 percent to $1,132.45 an ounce by 0637 GMT, after dropping 0.5 percent on Wednesday. U.S. gold GCcv1 slipped about $1 to $1,132.20.

U.S. private payrolls data on Wednesday suggested that labour market momentum likely remained strong enough for the Fed to consider an interest rate hike this year. The nonfarm payrolls report on Friday will be eyed for more clues. ID:nL1N1180PF

"Gold is awaiting the payroll data for indications of Fed intentions at the September FOMC meeting. So the market may move sideways until the numbers are released," said HSBC analyst James Steel, referring to the Fed's Federal Open Market Committee.

The U.S. central bank has pegged the likelihood of a rate increase to the strength of economic data. A strong jobs report could prompt the Fed to increase rates sooner than later.

Bullion traders remain wary of taking up fresh positions until they receive more clarity on whether the Fed will raise rates at its next meeting on Sept. 16-17.

Low interest rates cut the opportunity cost of holding non-yielding bullion.

Also weighing on bullion was the absence of Chinese buyers. Markets in China, a major gold consumer, are closed on Thursday and Friday for public holidays.

Tepid Chinese demand during the holidays will also keep gold prices capped, along with the uncertainty over a U.S. rate hike, HSBC's Steel said.

The dollar climbed against the euro and yen on Thursday as global investors tentatively stepped back into riskier equities, hurting bullion. USD/ MKTS/GLOB

The technical picture for gold looks bearish with near-term support at $1,117, ScotiaMocatta analysts said.

"We are bearish gold so long as it trades below the recent high of $1,170," they said.

Other precious metals were also under pressure on Thursday. Palladium XPD= and platinum XPT= were down about 0.3 percent. Silver XAG= fell 0.5 percent.

PRICES AT 0637 GMT

Metal

Last

Change Pct chg

Spot gold

1132.45

-1.2

-0.11 Spot silver

14.62

-0.08

-0.54 Spot platinum

1009.5

-3

-0.3 Spot palladium

580.5

-2

-0.34 Comex gold

1132.2

-1.4

-0.12 Comex silver

14.645 -0.022

-0.15 Euro

1.1227

DXY

95.925

COMEX gold and silver contracts show the most active months

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.