Gold holds near lowest in three months as US payrolls loom
[SINGAPORE] Gold traded near the lowest level in more than three months as investors wait for the monthly US payrolls report on Friday for a steer on the strength of the economy and the chances of an interest-rate hike this year.
Bullion for immediate delivery was little changed at US$1,267.20 an ounce as of 9:39am Singapore time, near the US$1,262.22 low reached on Wednesday. Prices slumped 3.3 per cent the previous day, the biggest drop in more than a year, on worries that central banks are set to gradually curb stimulus.
Gold has been rattled by rising bond yields and concern that policy makers are starting to question whether monetary easing alone will be enough to revive the global economy. Federal Reserve Vice Chairman Stanley Fischer called on Wednesday for "transparent and sound monetary policies" as well as investments in infrastructure and education, to boost growth in the long run.
"Ultra-low interest rates are not necessarily here to stay, especially if the right policies are put in place to address at least some of their root causes," Mr Fischer said in the text of a speech he was scheduled to deliver in New York.
US employers, including government agencies, took on 172,000 workers in September, while the jobless rate held at 4.9 per cent, economists estimate.
BLOOMBERG
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Energy & Commodities
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Anglo rejects BHP takeover bid as significantly undervalued
India rice prices at three-month low on shrinking demand
Gold prices set for weekly decline ahead of US inflation data
Pricey coffee is here to stay as hoarding, heat hit Vietnam supply
Oil settles higher as weak US economic growth offset by supply concerns