PRECIOUS-Gold slips on hopes of recovery, vaccine; focus on U.S. payrolls

PRECIOUS-Gold slips on hopes of recovery, vaccine; focus on U.S. payrolls

Reuters  | Jul 02, 2020 15:20

PRECIOUS-Gold slips on hopes of recovery, vaccine; focus on U.S. payrolls

* U.S. employment data due at 1230 GMT
* Nonfarm payrolls forecast increasing 3 million in June
* Asian stocks rise on vaccine hopes

(Updates prices)
By Brijesh Patel
July 2 (Reuters) - Gold edged lower on Thursday, easing from
a near eight-year peak hit in the last session, as solid U.S.
manufacturing data and promising results from a COVID-19 vaccine
trial revived hopes for a quick economic recovery, denting
demand for safe havens.
Spot gold XAU= was down 0.1% to $1,768.56 per ounce by
0703 GMT, after touching $1,788.96 on Wednesday, its highest
since October 2012.
U.S. gold futures GCv1 fell 0.1% to $1,778.
"A general pro-growth stance across markets is why we're
seeing a little bit of pressure on gold," said Michael McCarthy,
chief strategist at CMC Markets, adding that market action
reflected a tussle between concerns over rising cases and hopes
for a vaccine and positive U.S. data.
Manufacturing activity in the United States rebounded in
June, hitting its highest in more than a year, while similar
surveys from China, Germany and France all pointed to a recovery
in factory activity. The economic readings and optimism over a potential vaccine
lifted equities. MKTS/GLOB However, "The bull case for gold is still intact with real
rates low and suppressed and which would be able to sustain the
high price of gold," Phillip Futures said in a note.
Markets now await June U.S. employment data and weekly
initial jobless claims report for clues about the health of the
U.S. economy as new cases accelerate in several southern states.
Economists polled by Reuters expect U.S. nonfarm payrolls
likely increased by 3 million jobs in June, which would be the
most since the government started keeping records in 1939.
Offering some respite to gold, the dollar index .DXY fell
0.1% against its rivals. USD/
While major market moves are unlikely ahead of the U.S.
data, "any deterioration on the ground in Hong Kong could see
further support for safe-haven gold," CMC's McCarthy said.
Elsewhere, palladium XPD= gained 0.5% to $1,914.13 per
ounce, platinum XPT= rose 0.1% to $816.58, while silver XAG=
fell 0.4% to $17.87.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (South Africa) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+

Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.