Latest News

UK News

Click Here to read UK News

Forex News

Click Here to read Forex News

Market News

Click Here to read Market News

Irish News
/fxcentre/i-want-to/read-news
UK News
PRECIOUS-Gold edges higher as investors strap in for U.S. jobs data
Published at 04/08/2021 at 13:02

* ADP payrolls data due at 1215 GMT

* Dollar pinned near recent lows

(Updates prices)

By Arundhati Sarkar

Aug 4 (Reuters) - Gold prices edged higher on Wednesday due to a weaker dollar, although gains were kept in check ahead of U.S. jobs data later this week, seen as pivotal to the Federal Reserve's monetary policy strategy.

Spot gold rose 0.3% to $1,815.40 per ounce by 1129 GMT, while U.S. gold futures were up 0.2% to $1,817.50.

Gold has very little direction ahead of the jobs data and if U.S. yields continue on their downward track, it's likely to head back towards the recent peaks at $1,835, CMC Markets UK's chief market analyst Michael Hewson said.

Hewson said a break above technical resistance at $1,835 could trigger a leg higher toward $1,870 for gold.

The dollar index was hovering around recent lows, boosting gold's appeal by making it cheaper for those holding other currencies.

"The boost for gold is likely driven in part by hedging as traders cover some of their exposure to stock markets," ActivTrades technical analyst Pierre Veyret said in a note.

Friday's U.S. non-farm payroll report could provide investors with clearer signals, following dovish commentary from Fed Chief Jerome Powell last week.

Economists in a Reuters poll forecast a 926,000 job increase in July's non-farm payroll numbers. The National Employment Report by payroll processor ADP is also due later on Wednesday.

Fed officials said on Tuesday the labour market would take time to heal from the effects of the pandemic.

"Gold's price action remains consolidative but structurally positive and that points to further gains ahead. The converging 100- and 200-day moving averages suggest a breakout is coming and Friday's U.S. data will be a catalyst," said Jeffrey Halley, senior market analyst for Asia Pacific at OANDA.

Elsewhere, silver gained 0.7% to $25.74 per ounce, palladium rose 0.6% to $2,663.31, and platinum fell 0.4% to $1,045.40.

(Reporting by Arundhati Sarkar in Bengaluru; Editing by Emelia Sithole-Matarise and Jane Merriman)

((Arundhati.Sarkar@thomsonreuters.com; twitter.com/Arundhati_05; +1 646 223 8780 Ext: 2776))