LONDON: Gold steadied after falling to a one-week low on Monday as downward momentum from stronger-than-expected US jobs figures late last week lost steam, with concerns over negative global economic sentiment lending support.
The payrolls data on Friday reignited speculation that the Federal Reserve could press ahead with interest rate hikes later this year.
Spot gold was up 0.1 percent at $1,336.40 an ounce at 1419 GMT, after dipping to $1,329.55, the lowest since July 27.
US gold for December delivery edged 0.1 percent lower to $1,342.90 an ounce.
Among other precious metals, silver was up 1 percent at $19.85 an ounce after hitting a near two-week low at $19.56. It fell 3 percent on Friday.
Hedge funds and money managers decreased their net long position in COMEX silver contracts for the first time in two months in the week to Aug. 2, taking it off the previous week’s record high, data showed on Friday.
Platinum gained 0.9 percent to $1,152.10, while palladium was up 0.4 percent at $696.47.
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
Fading expectations for an increase were the chief factor driving a 28 percent rise in gold prices earlier this year. “The US is not hiking rates as fast as we expected them to, and so the macro environment is still favorable to gold,” Deutsche Bank mining analyst Frank Nganou said.
“At the moment, it’s all about central banks and whether they stay dovish. Every bit of information from the US will move gold.”
Fuelled by the US non-farm payrolls, US stocks, European shares and the dollar rose on Monday.
The payrolls data on Friday reignited speculation that the Federal Reserve could press ahead with interest rate hikes later this year.
Spot gold was up 0.1 percent at $1,336.40 an ounce at 1419 GMT, after dipping to $1,329.55, the lowest since July 27.
US gold for December delivery edged 0.1 percent lower to $1,342.90 an ounce.
Among other precious metals, silver was up 1 percent at $19.85 an ounce after hitting a near two-week low at $19.56. It fell 3 percent on Friday.
Hedge funds and money managers decreased their net long position in COMEX silver contracts for the first time in two months in the week to Aug. 2, taking it off the previous week’s record high, data showed on Friday.
Platinum gained 0.9 percent to $1,152.10, while palladium was up 0.4 percent at $696.47.
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
Fading expectations for an increase were the chief factor driving a 28 percent rise in gold prices earlier this year. “The US is not hiking rates as fast as we expected them to, and so the macro environment is still favorable to gold,” Deutsche Bank mining analyst Frank Nganou said.
“At the moment, it’s all about central banks and whether they stay dovish. Every bit of information from the US will move gold.”
Fuelled by the US non-farm payrolls, US stocks, European shares and the dollar rose on Monday.
