Gold moved lower on Wednesday afternoon as a stronger dollar and rebounding US stock market weighed on the precious metal, while investors await key US jobs data later this week.
The spot gold price was last at $1,134.0/1,134.4, down $5.80 on Tuesday’s close. Trade has ranged from $1,132.2 to $1,142.5 so far.
“The gold market has been rather quiet so far today with price tracking sideways with major FX crosses rates,” Tom Kendall, ICBC Standard Bank analyst, said.
“Physical markets remain somewhat subdued and the rest of the commodity complex is mixed, with crude markets undecided after yesterday’s reversal and base metals treading water,” he added.
US stock market rebounded slightly today after Chinese stocks stabilised – the CSI 300 initially continued lower this morning, dropping 4.7 percent at one stage before stabilising ahead of the holiday shut-downs, ending just 0.4 percent lower.
The dollar index was higher at 95.84.
In today’s data, US non-farm employment change in August showed that the world’s largest economy added 190,000 private sector jobs, missing the forecast of 204,000, according to payroll processor ADP. The figure is the strongest since June, but is down year-over-year for the seventh straight month.
The ADP figure precedes the US job’s report scheduled for release on Friday. A positive number could reignite speculation of a September rate hike by the Federal Open Market Committee (FOMC).
Revised non-farm productivity and unit labour costs both disappointed at 3.3 percent and -1.4 percent respectively. Factory orders also missed the forecast at 0.4 percent, while crude oil inventories came in at 4.7 million. The Beige Book is due later tonight.
Elsewhere, he Spanish unemployment change came better than expected, while the EU PPI was in line with the forecast.
Investors will now focus on the US and the key official non-farm employment change that will be released on Friday; a positive number is expected to raise the odds for a September rate increase by the Federal Open Market Committee.
As for the other precious metals, silver was little changed at $14.53/14.58. platinum at $1,008/1,013 was up $6 and palladium at $575/580 edged $3 higher.
(Editing by Tom Jennemann)
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