Gold Eyes $1159 Amid Strong Fundamentals
Gold held just below a one-week high on Tuesday, eyeing $1159 in the near term, as investors bet sluggish US nonfarm payrolls data would deter the Federal Reserve from hiking rates this year, although some cautioned that profit taking could hurt the metal in the near term.
Spot gold was little changed at $1,136 an ounce by 0337 GMT. Prices had risen to $1,141.80 in the previous session, the highest since September 28, before closing down 0.2 per cent.
The metal is still largely holding on to Friday’s 2.2 per cent jump, the biggest one-day rise since January 15 following data that showed US employers slammed the brakes on hiring over the last two months.
Non-interest-paying gold had benefited from ultra-low US rates. But expectations that the Fed will move to hike rates for the first time in nearly a decade has seen the metal lose about 4 per cent of its value this year.
However, recent US data has not been robust. After last week’s soft jobs report, data on Monday showed the pace of growth in the US services sector decelerated in September as new orders and business activity slowed.
Meanwhile, SPDR Gold Trust, the top gold-backed exchange-traded fund, saw a small outflow of 0.22 tonnes on Monday. That is the fund’s first outflow in two weeks.