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Bengaluru — Gold prices eased on Thursday as the dollar held firm after remarks from a top US Federal Reserve official signalled the possibility of bringing forward policy tightening.
Spot gold fell 0.1% to $1,809.96/oz by 2.55am GMT, while US gold futures were down 0.1% at $1,812.80.
Asia Pacific investors are trying to strike a balance between weak payrolls data and hawkish comments from Fed officials, putting the spotlight on Friday’s non-farm payroll data, said Margaret Yang, a strategist at DailyFX.
Bullion prices rose more than 1% in the previous session after the ADP National Employment Report showed US private payrolls increased far less than expected in July. However, that data was offset by the strongest reading for US services.
Gold pared most overnight gains after Fed vice-chair Richard Clarida’s remarks that conditions for raising interest rates could be met by the end of 2022.
Clarida also suggested the central bank could start cutting back on its asset purchase programme later in 2021.
Higher interest rates raise the opportunity cost of holding non-interest bearing gold.
The dollar index firmed on the hawkish comments, making gold more expensive for holders of other currencies.
“For gold to breach the $1,835 [resistance level], some catalysts could be a much poorer than expected non-farm payrolls ... Another is a rapid flare-up of [the Covid-19] Delta variant in the United States, which could lead to lockdowns and social distancing,” Yang added.
Coronavirus cases worldwide surpassed 200-million on Wednesday, with the US accounting for one in every seven global infections, according to a Reuters tally.
Elsewhere, silver was little changed at $25.34/oz, having hit a near three-week peak on Wednesday.
Platinum earlier hit a more than seven-month low of $1,005.50 and was last down 1.5% at $1,010.51.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Gold wilts in the face of a strong dollar
Bengaluru — Gold prices eased on Thursday as the dollar held firm after remarks from a top US Federal Reserve official signalled the possibility of bringing forward policy tightening.
Spot gold fell 0.1% to $1,809.96/oz by 2.55am GMT, while US gold futures were down 0.1% at $1,812.80.
Asia Pacific investors are trying to strike a balance between weak payrolls data and hawkish comments from Fed officials, putting the spotlight on Friday’s non-farm payroll data, said Margaret Yang, a strategist at DailyFX.
Bullion prices rose more than 1% in the previous session after the ADP National Employment Report showed US private payrolls increased far less than expected in July. However, that data was offset by the strongest reading for US services.
Gold pared most overnight gains after Fed vice-chair Richard Clarida’s remarks that conditions for raising interest rates could be met by the end of 2022.
Clarida also suggested the central bank could start cutting back on its asset purchase programme later in 2021.
Higher interest rates raise the opportunity cost of holding non-interest bearing gold.
The dollar index firmed on the hawkish comments, making gold more expensive for holders of other currencies.
“For gold to breach the $1,835 [resistance level], some catalysts could be a much poorer than expected non-farm payrolls ... Another is a rapid flare-up of [the Covid-19] Delta variant in the United States, which could lead to lockdowns and social distancing,” Yang added.
Coronavirus cases worldwide surpassed 200-million on Wednesday, with the US accounting for one in every seven global infections, according to a Reuters tally.
Elsewhere, silver was little changed at $25.34/oz, having hit a near three-week peak on Wednesday.
Platinum earlier hit a more than seven-month low of $1,005.50 and was last down 1.5% at $1,010.51.
Palladium eased 0.1% to $2,644.58.
Reuters
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