The gold price failed to make any gains in Wednesday afternoon London trading despite the weaker dollar, with investors remaining on the sidelines of the market ahead of Friday’s US non-farm payrolls report.
Spot gold was last at $1,189.90/1,190.70 per ounce, down $3.50 on the previous session’s close and having earlier peaked at $1,197.80.
Similarly, silver was last down three cents at $16.50/16.55 per ounce and platinum was $6 lower at $1,134/1,144 but palladium was up $4 at $789/795.
The dollar fell nearly two cents against the euro on Wednesday to 1.1348 following a weaker-than-expected ADP non-farm employment change report at 169,000 against consensus at 199,000.
But the effect on gold was limited ahead of Friday’s blockbuster US jobs report – the country is forecast to have created 231,000 jobs in April after an unusually weak reading of 126,000 in March.
The data may provide clues on when the US Federal Reserve will begin to normalise monetary policy, particularly after the US central bank recently shifted its stance almost exclusively to data dependency, citing in particular jobs and inflation data.
In other data out of the US, the preliminary unit labour costs figure at 5.0 percent was better than expected while non-farm productivity was largely in line with expectations.
The Chinese HSBC services PMI at 52.9 was also in line while the Spanish, Italian and French numbers bettered expectations at 60.3, 53.1 and 51.4 respectively, which was ultimately reflected in the overall eurozone figure of 54.1. The German PMI at 54.0, however, fell short.
(Editing by Mark Shaw)
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