Gold eases as dollar holds ground
Aug 2 (Reuters) - Gold prices edged lower on Monday as the dollar held steady, with traders eyeing monthly U.S. jobs data to gauge the health of the labour market.
* Spot gold XAU= fell 0.2% to $1,809.21 per ounce by 0137 GMT. Prices retreated from a two-week peak in the previous session after the dollar recovered.
* However, the greenback was down 0.8% last week, its worst weekly performance in over two months.
* U.S. gold futures GCv1 fell 0.1% to $1,814.90.
* The Federal Reserve should start reducing its $120 billion in monthly bond purchases this fall and cut them "fairly rapidly" so the program ends in the first months of 2022 and paves the way for an interest rate increase that year if needed, St. Louis Fed president James Bullard said on Friday.
* Bullard's comments came after Chair Jerome Powell's reassurance that a rate hike was not on the cards for the time being.
* China's factory activity expanded in July at the slowest pace in 17 months amid higher raw material costs and extreme weather, adding to concerns about a slowdown in the world's second-biggest economy.
* Top U.S. infectious disease expert Dr. Anthony Fauci warned on Sunday "things are going to get worse" with a rise in virus cases, mostly among the unvaccinated.
* Asia saw a jump in COVID-19 cases on Saturday, mostly driven by the highly transmissible Delta variant of the disease.
* Physical gold demand was subdued in India last week as rising prices discouraged retail purchases, while top consumer China saw some safety buying, though jewellery sales were dull.
* Speculators cut their net-long positions in COMEX gold and silver in the week ended July 27, data from the U.S. Commodity Futures Trading Commission showed.
* Silver XAG= fell 0.4% to $25.37 per ounce, palladium XPD= rose 0.1% to $2,664.34, while platinum XPT= gained 0.6% to $1,054.72.
DATA/EVENTS (GMT) 0800 EU
Markit Mfg Final PMI 0830 UK
Markit/CIPS Mfg PMI Final 1345 US
Markit Mfg PMI Final 1400 US
ISM Manufacturing PMI
Reporting by Eileen Soreng in Bengaluru; Editing by Ramakrishnan M.
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.