Gold edged higher on Tuesday morning in London while investors continue to digest the latest US jobs report and the impact it might have on the Federal Reserve’s thinking about rate rises.
– The spot gold price was last at $1,328.35/1,328.75 per ounce, up $2.30 on Monday’s close. Trade has ranged narrowly from $1,325.00 to $1,329.88 so far.
– The US August jobs report showed that only 151,000 Americans joined the labour market, missing expectations of an 186,000 increase. The disappointing data trimmed expectations of a rate increase in September. The next FOMC meeting is scheduled for September 20-21.
– “Gold prices continue to consolidate in a sideways-to-lower trend but dips remain well supported. We see this weakness as a result of the market having to absorb some profit-taking while it generally remains supportive,” FastMarkets head of research William Adams said.
– In data, the USM non-manufacturing PMI, IBD/TIPP economic optimism and labour market conditions index from the US are due later. US markets will reopen today following the Labor Day holiday weekend.
– “September is likely to welcome back more volatility and liquidity as traders returned from the seasonal holidays, notwithstanding the US FOMC meeting in the coming weeks,” Commerzbank noted.
– In the other precious metals, silver was last little changed at $19.560/19.600 per ounce but platinum at $1,075/1,082 was up $8.50 and palladium at $680/689 was $10.50 higher.
(Editing by Mark Shaw)
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Source: Bullion Desk News
