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| Bullion tips |
Bullion tips - Gold contributed to overnight losses on today, hurt by a strong dollar and as investors awaited a key US jobs report to gauge the timing of a Federal Reserve rate hike. Spot gold had eased 0.1% to USD 1,132.30 an ounce by 0318 GMT, after dropping 0.5 per-cent on yesterday.
US(United states) gold skid about USD 1 to USD 1,132.40. US private payrolls data on yesterday suggested that labour market momentum likely remained strong enough for the Fed to consider an interest rate hike current year. The nonfarm payrolls report on Friday will be eyed for more clues. "Gold is awaiting the payroll data for indications of Fed intentions at the September FOMC meeting. So the market may move sideways until the numbers are released," said HSBC analyst James Steel, referring to the Fed's Federal Open Market Committee. The US central bank has pegged the likelihood of a rate increase to the strength of economic data. A strong jobs report could prompt the Fed to hike rates sooner than later. Bullion traders remain wary of taking up fresh positions till they receive more clarity on whether the Fed will hike rates at its next meeting on Sept. 16-17. Low interest rates cut the opportunity cost of holding non-yielding bullion.
Besides this, other precious metals were also under pressure today. Palladium went down nearly 1 percent at USD 577.47 an ounce. Silver and platinum was lower by about 0.4 percent.
US(United states) gold skid about USD 1 to USD 1,132.40. US private payrolls data on yesterday suggested that labour market momentum likely remained strong enough for the Fed to consider an interest rate hike current year. The nonfarm payrolls report on Friday will be eyed for more clues. "Gold is awaiting the payroll data for indications of Fed intentions at the September FOMC meeting. So the market may move sideways until the numbers are released," said HSBC analyst James Steel, referring to the Fed's Federal Open Market Committee. The US central bank has pegged the likelihood of a rate increase to the strength of economic data. A strong jobs report could prompt the Fed to hike rates sooner than later. Bullion traders remain wary of taking up fresh positions till they receive more clarity on whether the Fed will hike rates at its next meeting on Sept. 16-17. Low interest rates cut the opportunity cost of holding non-yielding bullion.
Besides this, other precious metals were also under pressure today. Palladium went down nearly 1 percent at USD 577.47 an ounce. Silver and platinum was lower by about 0.4 percent.
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