Gold prices fall ahead of NFP, set for weekly loss

  • by Ofeed Team
  • September 6, 2019, 13:51 AM
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Gold prices fell during today's trading, set for another weekly loss, as strong U.S. data encouraged investors to return to high-risk assets, thereby hurting demand for the precious metal as a safe-haven asset. 

As of 08:20 GMT, spot gold was 0.73 percent down at $1,508.21, while the lowest level was at $1,502.80.  

On Thursday, the yellow metal posted its biggest daily losses in 3 years, as the price of the metal fell by $35 per ounce or 2 percent.

Data released yesterday showed a more than forecast increase in the jobs created last month by U.S. private employers and acceleration in growth pace of the services sector in August.

Gold prices also fell after positive trade developments, as the United States and China agreed to hold high-level talks in early October, which fueled optimism of significant progress in de-escalation in the bitter and long trade dispute between the two countries. 

As of 12:30 GMT, investors will put the monthly US jobs report under scrutiny, as it will directly reflect the strength of the US labor market in August.  

Despite the drop in gold prices for a second straight session on Friday, gold has jumped nearly 18 percent since the beginning of the year as the trade war has fueled fears of a global economic slowdown and prompted large central banks around the world to cut interest rates.

Now, gold prices set for the second weekly decline in a row, easing gains from its record high of $1557.01 an ounce recorded on September 4.

For other precious metals, silver fell 2.48 percent to $18.34 an ounce, after falling 4.8 percent in the previous session. Silver remains heading towards the end of the week at a high. Silver reached its highest level since September 2016 on Wednesday.  

Palladium dropped 0.76 percent to $1,549.25 after rising for three straight sessions, while platinum fell 2.14 percent to $942.70 an ounce. 

In the meantime, U.S. dollar index, which measures the currency's performance against six major currencies, was down 0.06 percent at 98.35.

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