Gold was under pressure from a stronger dollar on Thursday morning in London ahead of the hotly anticipated monthly US payrolls release scheduled for tomorrow.
– The spot gold price was last at $1,304.65/1,305.05 per ounce, down $4.45 on Wednesday’s close. Trade has ranged from $1,304.45 to $1,311.90 so far.
– Yesterday, the metal fell to a two-month low after upbeat US ADP jobs data for August pushed the dollar to a three-week high. US ADP non-farm payrolls – often seen as a precursor to Friday’s numbers – were a better-than-expected 177,000. The market expects August’s non-farm employment change at 186,000.
– “Gold prices are under pressure but attention is fixed on Friday’s July unemployment data. Against this ‘wait and see’ climate is apparent ongoing division among Fed policy makers based on recent public comments and speeches,” HSBC analyst James Steel said.
– Hawkish comments from Fed chair Janet Yellen and other central bank speakers last Friday have lifted expectations that it will raise rates this year. There is a 24-percent chance of an increase in September but most expect a rise only in December, according to the CME FedWatch tool.
– Today’s US data includes Challenger job cuts, the final manufacturing PMI, the ISM manufacturing PMI, construction spending, ISM manufacturing prices and total vehicle sales.
– In the other precious metals, silver was little changed at $18.620/18.670 per ounce while platinum edged $1 higher to $1,048/1,054 and palladium at $670/675 was up $2.50.
(Editing by Mark Shaw)
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Source: Bullion Desk News
