Gold firms as dollar, yields retreat; US jobs report in focus

GOLD prices edged higher on Thursday (Aug 4), buoyed by a pullback in the dollar and US Treasury yields, while investors awaited the US 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 per cent at US$1,767.97 per ounce, as of 1.23 am GMT. US gold futures rose 0.4 per cent to US$1,783.20.

The dollar was down 0.1 per cent against its rivals, making greenback-denominated gold less expensive for other currency holders, while benchmark US 10-year Treasury yields slipped from a more than 1-week high.

Data showed the US services industry unexpectedly picked up in July as new orders grew solidly, while US factory orders also rose in June, gaining 2 per cent after advancing 1.8 per cent in May.

Focus now shifts to US 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 signalled that the central bank remains resolute in getting US 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 per cent to 1,000.65 tonnes on Wednesday from 1,002.97 tonnes on Tuesday.

US 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.

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Gold falls as US dollar, yields rise on hawkish Fed comments

Spot silver eased 0.2 per cent to US$20 per ounce, platinum was up 0.1 per cent to US$899.06, and palladium eased 0.1 per cent to US$2,014.97. REUTERS