Gold drops as investors await US jobs report
Gold took a dip on Monday morning in Asia even as the dollar remained near a one-month low. Investors are also paying close attention to the status of the US labor market as they wait for the country’s latest job report.
Gold futures fell 0.27% to $1,812.35 by 1:31 PM ET (5:31 AM GMT), rolling over to the December 21st contract on August 1st. The safe-haven asset failed to maintain its two-week high on Friday as the greenback recovered from a one-month low.
The dollar, which typically moves inversely to gold, crept down on Monday. The US currency also took a 0.8% loss in the last week of June, its worst weekly performance in more than two months.
Going over the data front, the US job reports for July, including non-farm payrolls will be released on Friday. The data is expected to give investors clues on the central bank’s asset tapering timeline.
Meanwhile, US Fed Chairman Jerome Powell has cautioned as he handed down the Fed’s policy in the previous week that interest rate hikes were “ways away” and that the job market still “had some ground to cover.” This pronouncement has helped boost gold by more than 1%.
In the news about other precious metals, silver remained steady at $25.46, while palladium inched up 0.5% and platinum climbed up 0.9%.