The spot gold price stayed supported by a weaker US dollar during Asian trading hours on Thursday. The yellow metal continues to await direction from the blockbuster US payrolls report due Friday.
Spot gold was last at $1,214.90-1,215.20 per ounce, up $1.80 from Wednesday’s close. Trading ranged at $1,211.30-1,215.80 so far.
The US dollar index fell 0.2 percent to 94.25 so far on Thursday.
The market is awaiting the release of key economic data from the US with Friday’s payrolls report expected to set the probability for a Fed rate hike in the coming months, said Commerzbank on Wednesday.
US data has grown in importance since the Federal Open Market Committee (FOMC) released a hawkish April meeting minutes, saying it is prepared to raise rates as soon this month. If the labour market continues to show improvement while inflation and wages tick higher, the likelihood of an increase at its June meeting grows.
“With the FOMC meeting two weeks away and with the market more bullish about an interest-rate rise, gold may struggle on the upside for a while and spend more time consolidating. After the FOMC decision, the focus is likely to turn to the Brexit vote, which is likely to heat up in the final run up to the vote,” said William Adams, head of research at FastMarkets.
“We still like gold’s price outlook and think this price dip will attract and unleash pent-up demand but the market is likely to remain nervous and choppy until after the Brexit vote.”
Key economic data due later on Thursday includes the US ADP non-farm employment – which will offer a preview to the government-released jobs report on Friday – unemployment claims, challenger job cuts and crude oil inventories.
The European Central Bank will also conclude its policy meeting later on Thursday, though no change is expected to its monetary policy and stimulus package.
The Organisation of Petroleum Exporting Countries (OPEC) will meet in Vienna later today as well but there are doubts in the market that it will be able to reach an agreement to cap crude oil production.
In US data released Wednesday, the final manufacturing PMI for May came in at 50.7, above the expectation of 50.5. ISM manufacturing PMI and prices over the same period were at 51.3 and 63.5 respectively, both besting economic consensus.
Construction spending month-over-month in April, however, disappointed at -1.8 percent, a major miss from the 0.5 percent estimate.
In commodities, the Brent crude oil price rose 0.06 percent to $49.75 per barrel while the Texas light sweet crude spot price fell 0.02 percent to $48.89 recently on Thursday.
In equities, the Shanghai Composite increase 0.1 percent to 2,916.45 so far on Thursday.
In other precious metals, silver increased $0.025 to $15.975/15.995. Platinum was up $3 to $971/976, and palladium gained $5 to $545/550 recently on Thursday.
On the Shanghai Futures Exchange, gold for December delivery was unchanged at 258.80 yuan per gram and December silver was flat at 3,587 yuan per kilogram.
(Additional reporting by Dalton Barker)
The post Gold supported by weaker US dollar, awaits key data appeared first on The Bullion Desk.
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Source: Bullion Desk News
