Gold ticks up on softer dollar, focus on US jobs data

[BENGALURU] Gold inched up on Wednesday (Aug 5), aided by a softer US dollar, while market participants strapped in for upcoming key US jobs data for cues on the Federal Reserve’s next monetary policy move.

Spot gold was up 0.1 per cent at US$4,081.09 per ounce, as at 0040 GMT. US gold futures fell 0.4 per cent to US$4,137.20.

The US dollar remained subdued, making greenback-priced metals more attractive to holders of other currencies.

Attention this week will center on the US July payrolls report scheduled for release on Friday. The ADP employment report is due later in the day.

On the geopolitical front, Qatar said mediators were making progress in efforts to end the US-Iran war, although Teheran has denied US President Donald Trump’s assertion that talks are already underway.

The recent spike in oil prices due to the conflict has sparked bets that the Fed might need to raise rates to keep inflation in check.

Gold’s appeal wanes in a high-rate environment despite its status as an inflation hedge.

Traders are now pricing in 57 per cent odds of a hike at the US central bank’s September 15 to 16 meeting.

Federal Reserve Bank of Philadelphia president Anna Paulson said she was keeping an “open mind” about what lies ahead for monetary policy in an outlook that could call for higher rates.

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Data on Tuesday showed US job openings dropped in June as vacancies in the healthcare and social assistance sector declined by the most in nearly a year, but an improvement in hiring and low layoffs suggested the labour market remained stable.

Among other metals, spot silver gained 0.2 per cent to US$59.61 per ounce, platinum fell 0.2 per cent to US$1,732.00, while palladium lost 0.4 per cent to US$1,348.00. REUTERS