Gold down, cautious wait for US jobs data continues

By Gina Lee – Gold fell in Asia on Wednesday morning. Investors cautiously waited for the latest US jobs report, which could provide clues as to when the Federal Reserve might begin deleveraging assets and raising interest rates.

Gold futures fell 0.06% to $1,817.05 at 12:31 AM ET (4:31 AM GMT). The dollar, which usually moves inversely to gold, rose Wednesday after hitting a low of more than three weeks the day before.

On the data front, the US Conference Board (CB) Consumer Confidence Index was 113.8, a six-month low, and the composite S&P/Case-Shiller 20 NSA house price index grew a record 19.1% in June. As the labor market recovery is a prerequisite for the Fed to begin deleveraging assets, the focus is entirely on the jobs report, including nonfarm payrolls, which are expected on Friday.

Some officials at the European Central Bank (ECB) are also beginning to question whether they should start deleveraging, with Tuesday’s eurozone consumer price index (CPI) grew a higher-than-expected 3% year-on-year in August.

Among them Robert Holzmann, member of the Governing Council of the ECB, who suggested that asset reduction should be on the agenda at the Governing Council meeting next week.

In Asia-Pacific, China’s Caixin Manufacturing Purchasing Managers Index (PMI), which was released earlier today, was a lower than expected 49.2, below the 50 mark indicating growth. Australia’s GDP grew 9.6% year on year and 0.7% quarter on quarter.

Its stake in SPDR Gold Trust (P:GLD) fell 0.2% on Tuesday to 1,000.26 tons, the lowest level since April 2020.

In other precious metals, silver held steady at $23.88 an ounce, while platinum rose 0.3% and palladium gained 0.5%.

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