GOLD prices inched lower on Wednesday (Jun 5) as the US dollar firmed, while investors focussed on the US non-farm payrolls report due later in the week for more cues on the Federal Reserve’s rate-cut plans.
Spot gold was down 0.1 per cent at US$2,326.08 per ounce, as at 0122 GMT, after a 1 per cent loss on Tuesday. US gold futures edged down 0.1 per cent to US$2,345.80.
The US dollar index inched up 0.1 per cent, making bullion less attractive for other currency holders.
The US dollar’s relentless strength in the recent past will make way for minor weakness over the next 12 months, according to FX strategists in a Reuters poll, who generally agreed the US dollar was overvalued.
US job openings fell more than expected in April, as labour market conditions soften in a manner that could help the Fed’s fight against inflation.
Investors now await the non-farm payrolls data due on Friday to gauge the US economy’s health and if it will deter the Fed from cutting rates in September.
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Traders are currently pricing in about a 65 per cent chance of a rate cut in September, according to CME FedWatch tool.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion.
Net purchases of gold by global central banks rose to 33 metric tonnes in April from a revised net buying of three tonnes in March, the World Gold Council said, signalling continuing strong appetite from the sector despite high prices for the metal.
Swiss gold exports fell in April from March as higher supplies to India and Turkey were offset by lower deliveries to China and Hong Kong, customs data showed.
Spot silver fell 0.1 per cent to US$29.46 per ounce, platinum was up 0.1 per cent at US$987.75.35 and palladium lost 0.4 per cent to US$911.65. REUTERS
