Global gold prices steady near 7-week high ahead of US jobs data
Bengaluru: Gold prices held steady on Friday, close to a seven-week high hit earlier this week, as the dollar eased to hover near multi-month lows ahead of monthly US nonfarm payrolls data due out later and amid continuing US political uncertainty.
Spot gold was nearly flat at $1,268.00 per ounce at 10.04am. It was on track to end the week almost unchanged. US gold futures for December delivery fell 0.02% to $1,274.10 per ounce.
“Investors are cautious ahead of the data that’s coming out of the U.S. on Friday and that is why it’s been a bit quiet,” said Brian Lan, managing director at gold dealer GoldSilver Central in Singapore.
Markets are now awaiting July’s employment report, due out later in the session, for clues on whether it will impact the timing of the US Federal Reserve’s policy tightening.
“The dollar weakening on news of developments in the ongoing US elections investigations also assisted gold quite a bit,” according to Lan.
US Special Counsel Robert Mueller has convened a grand jury investigation in Washington to examine allegations of Russian interference in the last year’s vote and has started issuing subpoenas, sources familiar with the situation said on Thursday.
The Republican Party’s repeated failures to overhaul the healthcare system and multiple congressional and federal investigations into President Donald Trump’s campaign have cast a shadow over his first six months in office.
The dollar index, which tracks the greenback against a basket of six major peers, languished near fifteen-month lows hit earlier this week.
“We expect gold to trade entirely on the nuances of the US dollar ahead of the data,” said Jeffrey Halley, senior market analyst at OANDA.
Spot gold may test a support at $1,264 per ounce, a break below which could cause a further loss to the next support at $1,258, according to Reuters technical analyst, Wang Tao.
Among other precious metals, silver rose 0.2% to $16.65 per ounce, after falling to a one-week low in the previous session.
Platinum fell 0.2% to $958.80 per ounce and was on track for gaining more than 3.5% this week. Palladium was flat at $884.50 per ounce and was up less than 1% this week. Reuters