Precious Metal, Gold, on Monday, August 7, held steady near two-week lows with the dollar remaining supported by expectations of monetary tightening in the United States following stronger-than-expected jobs data last week.
Spot gold had risen 0.1 per cent to $1,258.69 per ounce by 0347 GMT. On Friday, it touched its lowest in just under two weeks at $1,254 an ounce and registered its first weekly decline in four.
US gold futures for December delivery fell 0.02 per cent to $1,264.30 per ounce.
“The job data was very good; gold is pressured,” said Richard Xu, a fund manager at China’s biggest gold exchange-traded fund, HuaAn Gold.
“There is not much other geopolitical uncertainty in the world, no extreme events. That’s why risk-aversion is subsiding and gold prices aren’t doing well.”
Asian stocks advanced on Monday, taking their cue from Wall Street, while the dollar moderated but retained most gains made on stronger-than-expected July jobs growth and the promise of a US tax plan that will repatriate corporate profits.
A stronger dollar makes bullion more expensive for holders of other currencies, while higher interest rates lead to increased bond yields and dampen demand for non-yielding gold.
US employers hired more workers than expected in July and raised their wages, signs of labour market tightness that likely clear the way for the Fed to announce a plan to start shrinking its massive bond portfolio.
“Investors were quick to liquidate some long positions with market pricing of another rate hike by the Fed rising slightly as a consequence,” said ANZ Research in a note.
Spot gold may retest support at $1,255 per ounce, a break below which could cause a further loss to the next support at $1,247, according to Reuters technical analyst Wang Tao.
In other precious metals, silver was flat at $16.23 per ounce, having retouched Friday’s over two-week low of $16.17 an ounce earlier in the session.
Platinum climbed 0.1 per cent to $960.20 per ounce, after hitting its highest since late April at $970.10 in the previous session. It gained over 3.2 per cent last week, its highest since early January.
Palladium fell 0.1 per cent to $876.60 per ounce, Economic Times reports.
