Gold retreats as dollar steadies ahead of U.S. jobs data
Gold could break above $1,735 on weak ADP data - analyst
ADP report due at 1215 GMT, followed by Friday's payrolls data
By Eileen Soreng
Oct 5 (Reuters) - Gold slipped on Wednesday as the dollar steadied, but bullion hovered above key level of $1,700 per ounce as investors held off making bigger moves ahead of U.S. jobs data that could influence the Federal Reserve's policy tightening path.
Spot gold XAU= was down 0.2% at $1,722.49 per ounce, as of 0625 GMT. Bullion lost some ground after rallying to its highest since Sept. 13, at $1,729.39, on Tuesday.
U.S. gold futures GCv1 dipped 0.1% to $1,728.10.
The dollar index =USD stabilised somewhat after marking its biggest drop since March 2020 overnight.
Gold could break above the key resistance level of $1,735 in case of a weak ADP employment data, City Index analyst Matt Simpson said, adding markets are very sensitive to employment data at the moment.
The ADP National Employment Report, due at 1215 GMT, comes on the heels of a government survey that showed U.S. job openings fell by the most in nearly 2-1/2 years in August, hinting at a cooling labour market.
This will be followed by the U.S. Labor Department's closely watched nonfarm payrolls (NFP) data later in the week.
"In case of a miss, traders will probably assume a weak NFP on Friday and that could weaken the dollar as traders get more excited about a Fed pivot and strengthen gold," Simpson said.
U.S. Fed officials recently reiterated their pledge to bring stubbornly high inflation under control.
While gold is traditionally seen as a hedge against inflation, rising U.S. rates have dimmed the appeal of the zero-yielding asset. Gold is down 6% for the year so far.
On the physical front, sources told Reuters that gold-supplying banks have cut back shipments to India and focusing on China, Turkey, and other markets where better premiums are offered.
Spot silver XAG= slipped 1% to $20.89 per ounce, platinum XPT= fell 0.4% to $926.63 and palladium XPD= was 0.3% lower at $2,310.31.
Reporting by Eileen Soreng in Bengaluru; Editing by Sherry Jacob-Phillips
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.