Gold prices slipped in the early morning US trading period as choppy conditions are predicted this week amid continued US labour market slack.
Gold for December delivery on the Comex division of the New York Mercantile Exchange was last down $4.90 or 0.5 percent to $1,090.0 per ounce. Trade has ranged from $1,089.50 to $1,097.10
Last week, Employment Cost Index demonstrated a 0.2 percent increase, below the 0.6 forecast and yet another example of persistently low wages. Despite weekly unemployment hovering at multi-decade lows, wage growth is nowhere to be found.
Investors now await the US employment report due for release on Friday. Market participants remain bearish on the precious metal’s complex with last week’s data showing net short positions increasing eight percent to a new record of 14,600 contracts.
“Trading looks likely to be choppy heading into the [US employment] data release – that positioning is currently sitting at extreme levels may suggest market participants are generally reluctant to take on large positions ahead of a key event,” Joni Teves, an analyst at UBS, said.
In US data, Core PCE price index month-over-month in June gained 0.1 percent, in-line with forecasts. June personal spending month-over-month and personal income month-over-month were up 0.2 percent and 0.4 percent respectively, both matching consensus.
US construction spending and total vehicles sales are slated for release later today.
Turning to Asia, the Caixin final manufacturing PMI for China at 47.8 was the lowest in two years and below expectations of 48.3 while the Japanese number at 51.2 was as expected but down from 51.4 last time. Over the weekend, China’s manufacturing PMI of 50 undershot.
In Europe, the Spanish final manufacturing PMI at 53.6 was just short of expectations but still in expansionary territory. The Italian number bettered expectations at 55.3 while the French and German numbers were as expected at 49.6 and 51.8 respectively. The aggregated eurozone number at 52.4 was also as expected.
Meanwhile in eurozone equities, Germany’s DAX or France’s CAC-40 were up 1.1 percent and 0.7 percent respectively, while the euro was 0.2 percent softer at $1.0959 against the dollar.
As for other precious metals, Comex silver for September delivery fell 10 cents to 14.645 per ounce. Trade has ranged $14.610 to $14.765.
Platinum for October settlement fell $9.30 to $975.70 per ounce, while the most actively traded palladium contract was at $622.15 per ounce, up $11.30.
(Editing by Tom Jennemann)
The post Gold posts modest lost; investors eye US employment report appeared first on The Bullion Desk.
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