PRECIOUS Gold eases in range-bound trade on caution ahead of U.S. jobs data
Shafaq News/ Gold prices eased on Tuesday, moving in a tight range, as investors stayed on the sidelines focusing on key U.S. jobs data due later this week, a key clue to the future policy stance of the Federal Reserve.
Spot gold fell 0.1% to $1,810.92 per ounce by 0609 GMT, while U.S. gold futures dropped 0.5% to $1,813.70.
"There's a lot of spare capacity in the labour market... If there's the sense that the Fed will continue to keep policy settings accommodative (in the) medium to longer term, that's a really good dynamic for gold prices, especially if we see inflation expectations remain relatively elevated," said Kyle Rhoda, an analyst at IG Market.
Large stimulus measures tend to support gold, which is often considered a hedge against inflation and currency debasement.
Fed Governor Christopher Waller on Monday said the central bank could start to reduce its support by October if the next two monthly jobs reports each show employment rising by 800,000 to 1 million, as he expects.
The failure of gold to hold gains in the face of even modest dollar strength and falling yields is disappointing, but as long $1.790.00 an ounce holds on a closing basis, gold's medium-term perspective still looks constructive, Jeffrey Halley, a senior market analyst, Asia Pacific at OANDA said in a note.
The dollar was on the back foot against the safe-haven yen and Swiss franc during Asia hours.
On the technical front, spot gold looks neutral in a range of $1,802-$1,822, and an escape could suggest a direction, according to Reuters technical analyst Wang Tao.
Indicative of sentiment, holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund fell 0.2% to 1,029.71 tonnes on Monday.
Silver fell 0.5% to $25.31 per ounce, palladium edged 0.3% higher to $2,682.32, while platinum eased 0.3% to $1,054.22.
Source: Reuters
