Gold struggles near 2-week low ahead of US jobs data

By: |
Singapore | Published: October 2, 2015 8:04:27 AM

Gold has lost nearly 3 percent for the week, its biggest such decline since the week ended July 24, on expectations that the Fed will raise rates this year.

gold rate today, gold rate, gold price, gold price today, gold price in India, gold rate in Delhi, Gold price in Delhi, silver price, silver rate, silver price today, bullion market, newsGold has lost nearly 3 percent for the week, its biggest such decline since the week ended July 24, on expectations that the Fed will raise rates this year. (Express Photo)

Gold was languishing near a two-week low on Friday after a five-day losing streak, as investors waited for US nonfarm payrolls data later in the session to gauge when the Federal Reserve would raise rates.

FUNDAMENTALS

Spot gold was little changed at $1,112.60 an ounce by 0048 GMT, not far from a two-week low of $1,110.75 reached in the previous session.

Gold has lost nearly 3 percent for the week, its biggest such decline since the week ended July 24, on expectations that the Fed will raise rates this year.

The yellow metal slid after data on Wednesday showed US private-sector jobs grew robustly in September, bolstering expectations that the nonfarm payrolls report later on Friday would also be strong.

Other data on Thursday showing a slowdown in manufacturing activity failed to provide any relief for gold, as traders were reluctant to place big bets ahead of the jobs report.

The Fed has said the timing of the first US rate hike in nearly a decade would be data dependent. Higher rates could dent demand for non-interest-paying gold, while boosting the dollar.

San Francisco Fed President John Williams on Thursday renewed his call for an interest-rate hike “sometime later this year,” citing near-full employment and rapidly rising house prices that may be a sign of excessive economic optimism.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.26 percent to 689.20 tonnes on Thursday.

Among other precious metals, palladium was trading near a three-month high of $679.50 reached in the prior session. It was headed for its fourth straight weekly gain, its longest such winning streak since June-July 2014.

The metal, chiefly used in catalysts for gasoline engines, was boosted by data showing strong car sales from major automakers. It has also benefited from views that demand for gasoline cars would increase after Volkswagen’s emissions scandal raised concerns about diesel engine demand.

Platinum, which is used in diesel cars, was on track for its second straight weekly drop, hurt by fears of lower demand from the auto sector.

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