July 2, 2015

Gold Holds Two-Day Drop Before U.S. Jobs Report; Palladium Rises

(Bloomberg)- Gold held a two-day decline before a U.S. employment report that’s expected to provide further clues on when the Federal Reserve will raise interest rates. Palladium extended a rebound from a two-year low.

Bullion for immediate delivery was 0.1 percent lower at $1,167.95 an ounce at 11:04 a.m. in Singapore, according to Bloomberg generic pricing. Prices lost 0.3 percent on Wednesday and 0.6 percent on Tuesday, when the metal declined to $1,166.99, the lowest level since June 5.

Gold is 1.4 percent lower this year as prospects for higher U.S. borrowing costs and a rising dollar outweighed concern that Greece may exit the euro. American companies boosted employment in June, a private survey showed on Wednesday, before the Labor Department’s report later today. The Bloomberg Dollar Spot Index advanced to the highest level in more than three weeks.

“U.S. non-farm payrolls will be the cornerstone,” Phillip Futures Pte said in a daily commentary on Thursday. A strong report would probably send prices down to $1,150, while a number below 230,000 may send it back to $1,180, it said.

The data on Thursday will probably show that employers added more than 200,000 jobs for the 15th time in 16 months, according to a Bloomberg survey. Higher interest rates and a strong dollar tend to curb the appeal of gold, which generally offers returns only through price gains.

Futures for August delivery fell 0.2 percent to $1,166.80 an ounce on the Comex. Bullion of 99.99 percent purity lost as much as 0.6 percent to 233 yuan a gram ($1,168.21) on the Shanghai Gold Exchange, the lowest price since March 20.

Silver for immediate delivery declined 0.2 percent to $15.5598 an ounce, dropping for a sixth day to head for the longest run of losses since March. The metal fell to $15.4956 on Tuesday, the lowest level in more than three months.

Palladium jumped 0.7 percent to $702 an ounce, rising for a third day after tumbling to $665 on Tuesday, the lowest price since 2013. Platinum was at $1,081.15 an ounce from $1,082.38.