PRECIOUS Gold Listens As Investors Seek Guidance From US Jobs Data
- SPDR Gold ETF holdings slide 1.5 tonnes on Tuesday
- The dollar is near a three-week low
Sept. 1 (Reuters) – Gold prices were flat on Wednesday as investors awaited a key U.S. jobs report on when the Federal Reserve could start cutting stimulus during a pandemic.
Spot gold was flat at $ 1,815.60 an ounce at 06:35 GMT while US gold futures were flat at $ 1,817.90.
The dollar index rose 0.1%, but moved closer to a more than three-week low hit on Tuesday.
“An impression of over 1 million jobs will put the cone front and center and be bearish for gold. While a number of around 700,000, or less, will ease these concerns and support gold. “said Jeffrey Halley, Senior Market Analyst, Asia Pacific at OANDA.
Gold “lacks momentum to trade significantly outside the 100 and 200 day moving average zone,” he added.
Economists polled by Reuters see the non-farm workforce increase by 750,000 in August.
A strong recovery in the labor market is a critical prerequisite for the Fed’s decision to step down.
Last week, Fed Chairman Jerome Powell acknowledged in his remarks at the Jackson Hole Symposium that tapering could begin this year, but he will remain cautious in his decision to raise interest rates. Read more
His comments were deemed conciliatory and pushed gold up 1.4% on Friday.
While gold is seen as a hedge against inflation and currency depreciation, caused by massive stimulus measures, falling interest rates also lower the opportunity cost of holding unproductive bullion. .
“Gold’s lack of tracking (after the Jackson Hole Symposium) is very telling as the market recognizes that the policy direction is now starting to slow the recovery,” said DailyFX currency strategist Ilya Spivak.
Sentiment indicators, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.2% to 1,000.26 tonnes on Tuesday, its lowest level since April 2020.
Silver fell 0.3% to $ 23.82 an ounce while platinum fell 0.1% to $ 1,011.11. Palladium rose 0.7% to $ 2,483.33.
Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu Sahu, Shounak Dasgupta and Sherry Jacob-Phillips
Our Standards: The Thomson Reuters Trust Principles.