Gold prices trended higher after US equities and the dollar pared early gains.
Gold for December delivery on the Comex division of the New York Mercantile Exchange rose $4.50 to settle at $1,090.10. Trade ranged from $1,082.70 to $1,093.30.
The yellow-metal oscillated between the previous day’s settlement, before breaking out as US equities fell. The Dow Jones industrial average and S&P were last down 0.8 percent and 0.9 percent respectively, while the dollar was 0.2 percent softer at $1.0924 against the euro.
“Subdued activity across the commodity sector as risk continues to be cut back until tomorrows employment report – a lot of sensitivity is being associated with the timing of the first rate rise yet the consequence will ultimately be the same,” Triland Metals said.
The aforementioned US non-farm employment report for July is projected to show 224,000 added jobs. The data point is one of the last key labour indicators that the Federal Reserve can use to gauge the status of the US economy before deciding whether to raise rates or not in September.
US interest rates have fallen precipitously since 2006 and a rate increase would signal to market participants that the Fed is seeing enough growth to ignore a lack of inflation.
In data today, US weekly unemployment claims came in at 270,000 below the forecast of 273,000, while Challenger Job Cuts year-over-year in July rose 125.4 percent, wildly outpacing the previous month’s gain of 42.7 percent.
Meanwhile in other global economies, Japan’s leading indicators were slightly stronger and German factory orders climbed 2.0 percent, which was up strongly from expectations for a 0.4-percent rise.
The Bank of England kept interest rates at 0.5 percent in an 8-1 vote, while stating that inflation is not expected to hit two percent till about two years from now.
As for other precious metals, Comex silver for September settlement rose 10.2 cents to $14.655 per ounce. Trade has ranged from $14.490 to $14.735.
Platinum for October delivery increased $2.30 to $953.20 per ounce, while the most actively traded palladium contract was at $598.0 per ounce, up $5.0.
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