Gold firms on sluggish dollar ahead of US jobs data

Gold firms on sluggish dollar ahead of US jobs data

By Administrator_India

Capital Sands

Gold prices eked out small gains on Friday, buoyed by a weaker dollar, with investors awaiting the U.S. jobs data to gauge the Federal Reserve’s plans to start tapering asset purchases.


Spot gold rose 0.1% to $1,811.79 per ounce by 0115 GMT, but was headed for its first weekly decline in four.

U.S. gold futures gained 0.2% to $1,814.80.

The dollar index =USD fell to a one-month low, bolstering gold’s appeal to those holding other currencies.

The number of Americans filing new claims for jobless benefits fell last week, while layoffs dropped to their lowest level in more than 24 years in August, suggesting the labor market was charging ahead even as new COVID-19 infections surge.

The Labor Department will release the non-farm payrolls report for August at 1230 GMT.

Solid jobs recovery is an import criteria for the U.S. central bank to start paring pandemic-era stimulus measures.

Gold is considered a hedge against inflation which could result from massive economic stimulus measures.

SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 998.52 tonnes on Thursday, lowest level since April 2020.

Russia’s international gold and foreign currency reserves rose to a record $615.6 billion after receiving a tranche from the International Monetary Fund, the central bank said.

Silver rose 0.2% to $23.92 per ounce, while platinum XPT= inched 0.1% higher to $1,000.04. Palladium XPD= climbed 0.3% to $2,408.18.

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