Gold rose 0.5 percent on Tuesday morning thanks to a marginally weaker dollar and a late push in the Australian dollar late in Asian trading.
Spot gold was last up $6.10 on Monday’s close at $1,090.60/1,091.40 per ounce, having traded in an intraday range of $11 so far.
The precious metal complex were pressured lower across the board on Monday, closing down an average of 1.9 percent – silver and gold are just below recent lows but set for rangebound trading until the end of the week.
“Gold just seems to be moving sideways and waiting for the next big figure to come along, namely non-farm payrolls this Friday,” Marex Spectron’s David Govett said.
Much of the market is likely to be sidelined ahead of the release of this number on Friday – a reading of 220,000 is forecast, down from the June reading of 223,000.
“Ahead of this I really don’t expect a lot apart from the occasional move with the more minor figures out before Friday,” Govett added.
Still, on Tuesday, gold’s modest gains appeared to come from a late surge in the Australian dollar following positive Australian data and the RBA’s decision to keep the benchmark interest rate on hold.
The Australian trade deficit widened in June to A$2.933 billion from A$2.677 billion previously but was better than the expected reading of $3 billion, while retail sales also unexpectedly picked up to a 0.7-percent increase in June.
“This provided the AUD/USD with a solid boost from 0.7265 up to 0.7300,” MKS noted. “The strengthening Aussie dollar underpinned a late bounce in the gold price up to $1,089.”
The US dollar was last slightly weaker at 1.0965 against the euro and down 0.1 percent at 97.38 against the basket of currencies, allowing gold to maintain its gains into European trading today.
In data this morning, Spanish unemployment at -74,000 was better than expectations of -45,600, underpinning the euro’s marginal gain. The eurozone PPI is due shortly – a reading of -0.1 is expected after the previous month’s 0.0 percent.
But European equity markets opened marginally lower, following solid gains in Asian markets this morning. At the close, the Shanghai composite was up 3.69 percent.
Still to come from the US will be factory orders and the IBD/TIPP economic optimism numbers.
In other metals, silver was last up 10 cents at $14.53/14.58 per ounce and palladium was $2 higher at $595/600. Platinum was down $2 at $954/959.
(Editing by Mark Shaw)
The post Gold price ticks higher, market rangebound ahead of US jobs appeared first on The Bullion Desk.
No comments:
Post a Comment