(Reuters) – Gold prices fell on Thursday as the U.S. dollar ticked up, while traders took positions ahead of U.S. jobs data and comments from the Federal Reserve chief that could offer further clarity on the depth of a likely September rate cut.
Spot gold fell 0.3% to $2,505.19 per ounce by 0606 GMT, trading below its record high of $2,531.60 hit on Tuesday. U.S. gold futures eased 0.2% to $2,541.70.
Market participants are now awaiting U.S. initial jobless claims data, due at 1230 GMT, and Fed Chair Jerome Powell’s comments on Friday at the Jackson Hole Economic Symposium.
Gold could receive another boost if the jobless data shows further softness in the labour market after recent downward revisions to payroll figures, said City Index senior analyst Matt Simpson.
The dollar index was up 0.2% after touching its lowest since late December on Wednesday, with minutes from the Fed’s July 30-31 meeting showing officials were strongly inclined toward a rate cut next month. [USD/]
“The minutes from the (Fed) meeting in July, you get the sense that the Fed is ready to cut rates… the Fed must now start to cut or else it will over tighten and end up hurting the economy unduly,” said Ilya Spivak, head of global macro, Tastylive.
Traders have fully priced in Fed easing in September, with a 62% chance of a 25 basis point cut, according to CME FedWatch tool.
The uptrend in gold has significantly lost momentum, with limited factors driving prices higher, said Brian Lan at Singapore-based dealer GoldSilver Central.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell for a second straight session on Wednesday. [GOL/ETF]
Among other metals, spot silver shed 0.5% to $29.49 per ounce, platinum edged 0.1% higher to $964.21 and palladium rose 0.27% to $953.84.
(Reporting by Daksh Grover in Bengaluru; additional reporting by Swati Verma; Editing by Sherry Jacob-Phillips, Sonia Cheema and Subhranshu Sahu)
By Daksh Grover
