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Gold eases off two-week high as US dollar firms

Gold eases off two-week high as US dollar firms

05 Jul 2021

Gold prices edged lower on Monday after hitting a two-week high in the previous session, weighed down by a slight uptick in the dollar, while investors awaited more US economic data for clues on the Federal Reserve‘s monetary policy plans.

Spot gold was down 0.1% to $1,785.41 per ounce by 0037 GMT, after hitting its highest since June 18 at $1,794.86 on Friday. US gold futures rose 0.1% to $1,785.20.

The dollar ticked up 0.1% against its rivals, making gold expensive for holders of other currencies.

US companies hired the most workers in 10 months in June, raising wages and offering incentives to entice millions of unemployed Americans sitting at home.

A stronger-than-expected US employment report is strengthening investors’ focus on economic data and the Fed’s next move, as markets cheer further evidence of a robust economic recovery amid worries over persistent inflation.

Japan’s services sector activity shrank for the 17th straight month in June as the coronavirus dampened demand at home and abroad, underscoring sluggish momentum for the world’s third-largest economy.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell to 1,042.58 tonnes on Friday from 1,043.16 tonnes on Thursday.

Speculators reduced their net long positions in COMEX gold in the week ended June 29 and raised their net long positions in silver, data from the US Commodity Futures Trading Commission showed.

Gold in India last week was being sold at a premium for the first time in more than two months as demand gained traction after curbs to combat the second wave of the coronavirus were slightly relaxed.

Silver fell 0.2% to $26.40 per ounce, palladium gained 0.3% to $2,793.19 and platinum shed 0.3% to $1,086.49.