BackGlobal gold prices hit over two-week low as dollar firms ahead of US jobs data
Gold prices hit over two-week lows, ahead of the US payrolls data, weighed down by a firmer dollar even as President Donald Trump reignites trade war fears
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Bengaluru: Gold prices hit over two-week lows on Friday, ahead of the US payrolls data later in the day, weighed down by a firmer dollar even as President Donald Trump re-ignited trade war fears by proposing $100 billion in new tariffs on China.
Spot gold was down 0.2% at $1,324.01 per ounce, as of 1.30pm, after hitting $1,321.16 earlier in the session, its lowest since 21 March. The US gold futures slipped 0.1% to $1,327.70 an ounce.
The dollar index, which measures the greenback against six other major currencies, gained 0.1% to 90.519 ahead of the closely watched US non-farm payrolls report.
The non-farm payrolls data due on Friday is expected to show that 193,000 jobs will be added, according to a Reuters poll.
“There are the usual precautionary position adjustments in the game ahead of the NFP (non-farm payroll) as a substantial employment number, and wage growth would see the market quickly price in a more aggressive Fed policy (four rate hikes) and push gold prices lower," said Stephen Innes, head of trading in Asia-Pacific for OANDA in Singapore.
Bullion prices earlier rose to $1,333.28 an ounce on fresh US-China trade worries.
The focus will be more on the trade war and the non-farm payroll data will have a short-term impact on gold prices, said Brian Lan, managing director at dealer GoldSilver Central in Singapore.
Trump on Thursday said he had instructed U.S. trade officials to consider $100 billion in additional tariffs on China, fuelling an already heated trade dispute between the world’s two biggest economies.
“Just when you thought it was safe to go back in the water, President Trump orders U.S. Trade Representative to consider $100 (billion) in additional tariffs, confirming the view that trade war rhetoric is unlikely to leave the picture anytime soon," Innes said.
While a holiday in China kept trading volumes thin, investors also awaited comments by US Federal Reserve Chairman Jerome Powell due on Friday.
“Regarding Powell, investors will be on the lookout for any cautionary comments regarding potential deleterious impacts from trade war tensions on the macro outlook, thereby impinging on Fed rate hike prospects," OCBC said in a note.
In other precious metals, spot silver dropped 0.2% to $16.31 an ounce. Platinum slipped 0.6% to $904.50 an ounce, and was on track for a second straight week of losses, down over 2%.
Palladium fell 0.4% to $901.50 an ounce after hitting $898 earlier in the session, its lowest since 16 August 2017. The metal was on track for an eleventh straight session of declines and down over 5% so far this week. Reuters
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