Gold firms as dollar, yields retreat; U.S. jobs report in focus

Thursday,   04-Aug-2022   08:40 AM (IST)

Gold prices edged higher on Thursday, buoyed by a pullback in the dollar and U.S. Treasury yields, while investors awaited the U.S. non-farm payrolls report later this week that could offer more cues on the Federal Reserve's rate hike plans. Spot gold was up 0.2% at $1,767.97 per ounce, as of 0123 GMT. U.S. gold futures rose 0.4% to $1,783.20. The dollar was down 0.1% against its rivals, making greenback-denominated gold less expensive for other currency holders, while benchmark U.S. 10-year Treasury yields slipped from a more than one-week high. Data showed the U.S. services industry unexpectedly picked up in July as new orders grew solidly, while U.S. factory orders also rose in June, gaining 2% after advancing 1.8% in May. Focus now shifts to U.S. jobs data due on Friday that could offer more clarity on Fed's aggressive tightening to fight against inflation. Fed policymakers on Tuesday and Wednesday signaled that the central bank remains resolute in getting U.S. rates up to a level that will more significantly curb economic activity and put a dent in the highest inflation since the 1980s. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 1,000.65 tonnes on Wednesday from 1,002.97 tonnes on Tuesday. U.S. House of Representatives Speaker Nancy Pelosi left Taiwan on Wednesday, adding that Chinese anger cannot stop world leaders from travelling to the self-ruled island claimed by Beijing. Analysts have sharply lowered their price forecasts for platinum and palladium as the global economic slowdown reduces demand, a Reuters poll showed. Spot silver eased 0.2% to $20 per ounce, platinum was up 0.1% to $899.06, and palladium eased 0.1% to $2,014.97.