Yahoo Finance Gold dips as dollar steadies, focus turns to US jobs data
By Rahul Paswan
(Reuters) - Gold fell more than 1% on Tuesday as the dollar steadied ahead of U.S. jobs data, due later this week, which could set the tone for the Federal Reserve's interest rate strategy.
Spot gold fell 0.9% to $2,329.10 per ounce by 1818 GMT.
U.S. gold futures settled 0.9% lower at $2,347.4 per ounce.
Gold reversed gains from a bounce late in the previous session following weaker U.S. manufacturing data. The latest fall in the safe-haven asset also came despite a dip in Wall Street. [MKTS/GLOB][.N]
"There was probably a bit of a reaction to the US dollar," and an element of profit-taking in gold, said Bart Melek, head of commodity strategies at TD Securities.
The dollar index steadied making gold more expensive for overseas buyers, after falling to its lowest since mid-April overnight. [USD/]
Investors now await Friday's U.S. non-farm payrolls data for clarity on rate cuts. Lower rates reduce the opportunity cost of holding non-yielding bullion.
Weaker jobs data might prompt a short-term rally in gold, while a stronger number will pressure gold since it may suggest the Fed is going to have a "more difficult time" cutting rates, said Jim Wyckoff, senior analyst at Kitco Metals.
Overall, "gold is likely to grind sideways, if not sideways to slightly lower here in the coming few weeks, barring an unexpected geopolitical event that would drive safe haven demand."
Additionally, investors kept an eye on results from elections in India, the world's second-biggest gold consumer.
"If equities continue to crash, there will be some funds going into gold as well," said ANZ commodity strategist Soni Kumari.
Overall declines in commodities, led by oil, may also be contributing to the bearish sentiment in precious metals, analysts said. [O/R]
Silver fell 3.8% to $29.59 per ounce, platinum shed 1.6% at $995.50 per ounce and palladium lost 0.1% to $916.50 per ounce.
(Reporting by Rahul Paswan in Bengaluru; Editing by Shreya Biswas and Maju Samuel)
