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B.and Eileen Soreng
September 3 (Reuters) – The price of gold rose on Friday after the dollar weakenedWith investors waiting for U.S. job data to gauge the Federal Reserve’s plans to reduce bond purchases, although the metal was heading for its first decline in four this week.
Spot gold XAU = rose 0.2% to $ 1,813.15 an ounce through 0327 GMT and declined 0.2% year over yearwell weekly.
US gold futures GCv1 rose 0.2% to $ 1,815.50.
The dollar index = USD fell to a monthly low, adding to the appeal of gold to those holding other currencies. The greenback was heading for the second straight weekly decline. USD /
“We’re seeing a slight prepositioning for people who may want to get on the payroll outside of agriculture,” said Stephen Innes, managing partner at SPI Asset Management.
A weaker number “would be positive for gold, as it strengthens (Fed Chairman Jerome) Powell’s more cautious outlook for the US economy … We could see a break below the $ 1,800 line if we get a lot of pressure, â€added Innes.
before the work The Department’s non-farm payroll report, due at 1230 GMT, showed the number of Americans filing new jobless claims fell last week, while layoffs in August fell to their lowest level in more than 24 years .
Powell had called last week if If employment growth continues, the central bank could start cutting its bond purchases this year but would remain cautious on the decision to raise rates.
While gold is seen as a hedge against inflation and currency devaluation through massive stimulus measures, lower interest rates also lower the opportunity costs of holding unprofitable precious metals.
SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 998.52 tons on Thursday, the lowest level since April 2020. GOL / ETF
silver XAG = rose 0.2% to $ 23.92 an ounce.
platinum XPT = was up 0.2% to $ 1,001.36. palladium XPD = rose 0.3% to $ 2,406.65.
(Reporting by Eileen Soreng in Bengaluru; editing by Uttaresh.V)
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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