GOLD prices slipped in early Asian hours on Tuesday (Sep 3), as investors awaited a slew of US economic data to gauge the size of the Federal Reserve’s expected interest rate cut this month.
Spot gold was down 0.1 per cent at US$2,495.79 per ounce, as at 0031 GMT, after hitting a more than one-week low in the previous session.
US gold futures was little changed at US$2,527.70.
The major event this week will be the US non-farm payrolls report due on Friday. The ISM surveys, JOLTS job openings and ADP employment report are also on investors’ radar.
Traders currently see a 31 per cent chance of a 50-basis-point rate cut at the US central bank’s Sep 17 to 18 policy meet and a 69 per cent chance of a quarter-point cut.
Lower interest rates reduce the opportunity cost of holding the zero-yield bullion.
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Last week, data showed that US consumer spending increased solidly in July, suggesting the economy remained on firmer ground early in the third quarter and arguing against a half-percentage-point interest rate cut from the Fed.
Meanwhile, factories in the eurozone remained mired in contraction last month, surveys showed, with the data suggesting a recovery could be some way off but Asian and British manufacturers showed tentative signs of recovery.
Spot silver dipped 0.1 per cent to US$28.47 per ounce, platinum fell 0.7 per cent at US$923.88 and palladium lost 0.4 per cent to US$975.00.
Sibanye Stillwater on Monday said it will report a half-year loss hurt by a 7.5 billion rand (S$550 million) writedown on its US assets reflecting sliding palladium prices. REUTERS
