Gold feels the heat of the stronger dollar
Equities rise ahead of the nonfarm payroll report that is likely to bolster the expectation of a near-term US rate hike
BENGALURU — Gold prices slipped on Thursday as the dollar firmed and equities rose ahead of Friday’s nonfarm payroll report that should bolster the expectation of a US interest rate hike that would push investors to exit their bullion holdings.Spot gold edged lower 0.1% at $1,264.90/oz by 4.03am GMT. Bullion touched a fresh low of $1,261.59 in the previous session, its lowest since June 24.US gold futures fell 0.1% to $1,267.90/oz.Friday’s employment report is expected to show 175,000 jobs were added in the month, according to the median estimate of 100 economists polled by Reuters. A positive jobs report may provide more evidence to the US Federal Reserve to decide to raise interest rates in December.Gold is highly sensitive to rising rates, which lift the opportunity cost of holding nonyielding assets."The labour market is closely watched by not only the Fed but also market watchers. So its surprise on upside will make market watchers expect an even higher probability of rate hike...
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