Gold prices declined for the second straight session as volumes were light ahead of tomorrow’s US job’s report.
Gold for December delivery on the Comex division of the New York Mercantile Exchange fell $9.10 to close at $1,124.50 per ounce. Trade ranged from $1,121.0 to $1,133.80.
The August US non-farm employment report – scheduled for release tomorrow – has taken on greater importance over the last few weeks heading into the September Federal Open Market Committee (FOMC) meeting.
The forecast estimates the world’s largest economy added 220,000 jobs – a number above 200,000 would be another arrow in the quiver for increasingly hawkish Fed members.
“Eyes begin focussing towards the US employment report this Friday, and various holiday schedules are adding to already thin conditions,” Triland Metals said.
The FOMC is deciding whether to raise the Federal Funds rate for the first time since 2006. The rate has remained at near-zero levels since December 2008.
The holidays include China’s Parade celebrating the 70th anniversary of the Allied victory over the Japanese Emperor during World War II. Chinese markets are closed the rest of the week, while the US weekend extends into Monday because of Labor Day.
In news today, European Central Bank (ECB) President Mario Draghi warned of possible negative inflation in coming months, while noting that the recovery has been weaker than estimated.
The ECB left its benchmark interest rate at 0.05 percent, a move that was widely expected with eurozone inflation currently at 0.1 percent.
While in a data dump, US weekly unemployment claims were up 12,000 to 282,000 in the week ending August 29, missing the forecast of 273,000, but under the psychological 300,000 mark.
Outplacement firm Challenger, Gray & Christmas reported that layoffs fell 61 percent last month to 41,186 after rising to a four-year high in July.
Final services PMI in August was 56.1, besting expectations of 55.2, while ISM non-manufacturing PMI for the same month was 59.0, above the forecast of 58.3.
Meanwhile in US equities, the Dow Jones industrial average and S&P were each up 0.1 percent, while the dollar was 0.8 percent stronger at $1.1133 against the euro.
As for the other precious metals, Comex silver for December delivery was down 0.7 cents at $14.660 per ounce. Trade has ranged from $14.550 to $14.950.
Platinum futures for October delivery on the Nymex were down $7.20 at $1,006.40 per ounce, while the most actively traded palladium contract was at $574.10, up $9.25.
(Editing by Tom Jennemann)
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