Gold dips on firmer dollar as market eye US jobs data
01 Jul 2021
Gold prices edged lower on Thursday, as the dollar hovered near a three-month peak, with investors looking ahead to a key U.S. jobs report due later this week for clues on what it might mean for monetary policy.
Spot gold eased 0.1% to $1,769.11 per ounce, as of 0117 GMT. U.S. gold futures fell 0.2% to $1,768.10.
The dollar held firm near a three-month high scaled in the previous session. A stronger dollar makes greenback-priced metals more expensive for holders of other currencies.
U.S. private payrolls increased more than expected in June as companies rushed to boost production and services amid a rapidly reopening economy.
Federal Reserve Bank of Dallas President Robert Kaplan said Wednesday he would like the Fed to start reducing its support for the economy before the end of the year, in part to make an abrupt policy tightening less likely later on.
A Fed rate hike will increase the opportunity cost of holding bullion and dull its appeal.
Investors are now awaiting the U.S. non-farm payrolls report on Friday.
India has slashed the base import price of palm oil, soyoil, gold and silver, the government said in a statement late on Wednesday, as prices fell in the overseas market.
Silver rose 0.1% to $26.14 per ounce, palladium fell 0.5% at $2,764.68 and
shed 0.6% at $1,065.74.