The gold price was little changed on Wednesday, as the metal marked time ahead of the non-farm payroll data, set for release on Friday.
Spot gold was last at $1,087.20/$1,088 per ounce, a $0.70 increase on the previous day’s close.
“Gold prices are likely to be waiting for this week’s US jobs data, which is likely to be the next pointer as to when the Fed makes its first move. The markets therefore remain vulnerable to both the upside and downside, the path of least resistance is to the downside, but should prices find reason to rally, then the extended gross fund short position could prompt short-covering,” said FastMarkets analyst William Adams.
Currently projected at 220,000 jobs added in July, down from 223,000 in June, the non-farm employment change will be a key indicator for the market and the Federal Reserve ahead of the latter’s much anticipated September meeting.
In currencies, the euro has lost ground against the dollar, last at $1.0864.
“We suspect that we will see a steady grind lower across most commodity complexes, including gold, largely attributable to the strength of the dollar and poor technicals that will only encourage more funds to further increase their short side exposure,” INTL FCStone analyst Edward Meir said.
In today’s data, there will be EU final services PMI and retail sales. While from the US, ADP non-farm employment change, trade valance, final services PMI and ISM non-manufacturing PMI are all set for release.
Silver at $14.53/14.58 was virtually unchanged from the previous $14.55. and palladium at $596/601 was also unchanged.
Platinum at $951/956 was down $2 having dropped yesterday to the weakest since January 2009.
“Cheaper platinum prices have given producers second thoughts on project expansions and have led to talks of mine rationalisation. While these issues are not likely to play out in the short term, restrictions to supply would likely play out in the medium to longer term,” said James Steel at HSBC.
The post Gold price stagnant, awaits further direction appeared first on The Bullion Desk.
No comments:
Post a Comment