August 04, 2021
Gold inches higher on weaker dollar ahead of U.S. jobs data
(Reuters) - Gold edged higher on Wednesday, helped by a subdued dollar, but the precious metal held a narrow range as investors awaited signals from U.S. jobs data on the labour market recovery.
Spot gold rose 0.2% to $1,813.31 per ounce , while U.S. gold futures were up 0.1% at $1,816.00.
Gold appears to be in wait-and-see mode, said Jeffrey Halley, senior market analyst for Asia Pacific at OANDA.
“Gold’s price action remains consolidative but structurally positive and I believe that points to further gains ahead. The converging 100- and 200-day moving averages suggest a breakout is coming and I believe Friday’s U.S. data will be a catalyst.”
The National Employment Report by payroll processor ADP, due later in the day, could set the stage for the much anticipated U.S. non-farm payroll numbers on Friday.
The labour market would take time to heal from the effects of the pandemic and more is needed to be done for the economy to get fully back on track, U.S. Federal Reserve Governor Michelle Bowman said on Tuesday. San Francisco Fed President Mary Daly expressed similar views.
The dollar was pinned near recent lows against other currencies.
Dovish remarks last week by Jerome Powell, the chairman of the U.S. central bank, on interest rate hikes being “ways away” had sent gold rising more than 1% while the dollar slipped to a one-month low.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Market sentiment is “slightly bullish”, Nicholas Frappell, global general manager at ABC Bullion, said, adding that gold price is holding well above medium-term technical support levels and expects it to find resistance intraday at $1,816 and then at $1,827.
Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.2% to 1,027.97 tonnes on Tuesday.
Silver gained 0.4% to $25.64 per ounce, platinum and palladium were up 0.2% at $1,051.17 and $2,652.99, respectively.