Gold prices rose to a two-month low on Wednesday. As investors wait for US employment data. For more clarity on the policy position of the Federal Reserve Bank. The price of precious metals was the lowest in a month since November 2016.
Spot gold was down 0.1% at $1,763.63 an ounce as of 0254 GMT, hitting its lowest since April 15 at $1,749.20 on Tuesday. US gold futures held steady at $1,763.50.
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Bullion prices were down 7.5 percent this month, pressured by the Fed̵7;s sudden turnaround, but were up 3.3 percent for the quarter.
DailyFX currency strategist Ilya Spivak said: “Gold has risen near its lowest level since the Fed’s monetary policy change. and is currently awaiting US economic data for further guidance.
“Non-farm payrolls on Friday will be the main driver for the market in the near term. If it shows higher inflation and strong job growth. We will see gold in the next layer.”
Commodities remain a popular bet despite recent declines.
A Reuters poll showed that US non-farm payrolls It is likely to add 690,000 jobs this month, compared with 559,000 in May.
Fed Governor Christopher Waller said Tuesday that he “Extremely optimistic” about the economy And the central bank will start raising interest rates next year.
Fed rate hike increases opportunity cost of holding gold bullion which will reduce the appeal
Technically, the failure of gold to break through the 100-day moving average is a bearish signal that could encourage ETF investors who have waited so far to participate in the selloff, ANZ said in a note.
Silver rose 0.3% to $25.82 an ounce. Palladium rose 0.5% to $2,689.73 and is targeting for a fourth straight quarterly profit.
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Platinum rose 0.3% to $1,070.38, but is set for its biggest monthly and quarterly drop since March 2020.
(Reporting by Sumita Layek in Bengaluru; Editing by Aditya Soni)