Gold prices were on pace to finish lower for the first time in about a week as US equity markets and the dollar recovered from yesterday’s drawdown.
Gold for December delivery on the Comex division of the New York Mercantile exchange was last down $6.70 or 0.6 percent to $1,133.10 per ounce. Trade has ranged from $1,131.20 to $1,141.90.
In US data released this morning, ADP non-farm employment change in August showed the world’s largest economy added 190,000 private sector jobs, missing the forecast of 204,000. 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).
The meeting is scheduled for September 16-17.
“Gold is in a very interesting position technically while breakout pressure builds ahead of the FOMC’s September Federal Funds rate decision,” FastMarkets analyst Tom Moore said. “The metal is trading sideways in a triangle pattern while awaiting a catalyst for a breakout, which is likely to be US jobs data.”
In the interim, the job’s report and Chinese equity stability – the Shanghai Composite Index was down 0.2 percent – brought a healthy boost to US equities and the greenback.
The Dow Jones industrial average and S&P were up 1.2 percent and one percent respectively, while the dollar was 0.6 percent stronger at $1.1245 against the euro.
Meanwhile, outflows from gold ETFs accelerated – holdings in the funds tracked by FastMarkets have fallen to 1,531.15 tonnes.
Chinese markets will be closed on September 3-5 to mark the 70th anniversary of allied victory over Japan in World War II.
As for other precious metals, Comex silver for December settlement was last up five cents to $14.670 per ounce. Trade has ranged from $14.425 to $14.815.
Platinum for October delivery on the Nymex jumped $6.90 to $1,015.30 per ounce, while the most-actively traded palladium contract was at $582.90, up $3.70.
(Editing by Tom Jennemann)
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