Gold pauses after nine-session down streak ahead of US payrolls data

GOLD paused near a seven-month low on Friday (Oct 6) after declining for nine straight sessions, as investors held their breath for US nonfarm payrolls data that could determine whether interest rates will be raised again.

Spot gold was steady at US$1,820.35 per ounce by 0103 GMT, while US gold futures rose 0.1 per cent to US$1,834.10. Prices have closed lower in all of the previous trading sessions since Sep 25, extending losses by 1.5 per cent so far this week.

Benchmark US 10-year bond yields held near 16-year highs and the US dollar remained on track for 12 straight weeks of gains, eroding demand for non-yielding and greenback-priced gold.

Federal Reserve officials on Thursday indicated little concern that the recent rise in US Treasury yields could imperil a “soft landing” for the economy, and said it could actually help the central bank in its fight against inflation.

Data on Thursday showed the number of Americans filing new claims for unemployment benefits rose moderately last week, while layoffs declined in September.

US trade deficit shrank to its smallest in nearly three years in August, with exports of capital goods hitting a record high.

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Gold gains after multi-session sell-off as US dollar, yields retreat

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2 per cent to 867.58 tonnes on Thursday, their lowest since August 2019.

Spot silver gained 0.3 per cent to US$20.96, platinum firmed 0.2 per cent to US$856.30 and palladium rose 0.6 per cent to US$1,148, having hit five-year lows in the last session. All were on track for weekly losses.

Prices for platinum-group metals could remain depressed, CEO of the world’s biggest platinum miner by value, Anglo American Platinum, told Reuters. REUTERS