The gold price remained in the lower end of its range during Thursday morning sessions, with the yellow metal up just $1.60 at $1,086.30/1,087.10 per ounce, having recovered from the fresh 2010 lows hit yesterday.
The market is marking time ahead of tomorrow’s blockbuster non-farm, payroll data.
The non-farm jobs report could prove fundamental to the Fed’s thinking on when to raise rates from near-zero levels. A reading of 220,000 is forecast, down from the June reading of 223,000.
“Gold prices are hovering above lows as are the other precious metals and they look set to head lower. It looks as though only the slim possibility of a poor US employment report is holding prices back… Should the dollar weaken then that could prompt short-covering rallies as the fund shorts are holding extended positions,” said FastMarkets analyst William Adams.
In currencies, the dollar was slightly weaker against the euro – last at $1.0917.
Traders said that gold is likely to remain under pressure throughout the summer months.
“The current financial markets do not favour investment in gold regardless of whether it seems oversold or cheap. Until commodities deliver the final flush-out they so clearly need, gold will remain under pressure” Triland noted.
In data today, EU retail PMI and US challenger job cuts and unemployment claims are scheduled.
Silver at $14.60 was little changed from the previous close of $14.58. Platinum at $951/956 was $6 higher, while palladium increased $8 at $597/602.
“Both platinum and palladium continued their two months’ long lasting decline, affected by lower car sales in China,” said Commerzbank.
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