Gold firms as dollar, yields retreat; U.S. jobs report in focus

News

Gold prices edged higher on Thursday, buoyed by a pullback in the dollar and U.S. Treasury yields, while investors awaited the U.S. non-farm payrolls report later this week that could offer more cues on the Federal Reserve’s rate hike plans.

FUNDAMENTALS


* Spot gold was up 0.2% at $1,767.97 per ounce, as of 0123 GMT. U.S. gold futures rose 0.4% to $1,783.20.

* The dollar was down 0.1% against its rivals, making greenback-denominated gold less expensive for other currency holders, while benchmark U.S. 10-year Treasury yields

slipped from a more than one-week high.

* Data showed the U.S. services industry unexpectedly picked up in July as new orders grew solidly, while U.S. factory orders also rose in June, gaining 2% after advancing 1.8% in May.

* Focus now shifts to U.S. jobs data due on Friday that could offer more clarity on Fed’s aggressive tightening to fight against inflation.

* Fed policymakers on Tuesday and Wednesday signaled that the central bank remains resolute in getting U.S. rates up to a level that will more significantly curb economic activity and put a dent in the highest inflation since the 1980s.

* SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 1,000.65 tonnes on Wednesday from 1,002.97 tonnes on Tuesday.

* U.S. House of Representatives Speaker Nancy Pelosi left Taiwan on Wednesday, adding that Chinese anger cannot stop world leaders from travelling to the self-ruled island claimed by Beijing.

* Analysts have sharply lowered their price forecasts for platinum and palladium as the global economic slowdown reduces demand, a Reuters poll showed.

* Spot silver eased 0.2% to $20 per ounce, platinum

was up 0.1% to $899.06, and palladium eased 0.1% to $2,014.97.

DATA/EVENTS (GMT)


0130 Australia Trade Balance G&S June

0600 Germany Industrial Orders MM June

0600 Germany Manufacturing O/P Cur Price SA June

0600 Germany Consumer Goods SA June

0830 UK All-Sector PMI July

1100 UK BOE Bank Rate Aug

1230 US International Trade June

1230 US Initial Jobless Clm Weekly

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