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Home Gold News Gold Prices Extend Losses Amid Stronger Dollar Ahead of US Payrolls Data

Gold Prices Extend Losses Amid Stronger Dollar Ahead of US Payrolls Data

by anna

Gold prices continued to decline in European trade, marking the fourth consecutive session of losses and almost touching a three-week low that was reached yesterday. The precious metal faced pressure from a stronger dollar, which gained ground ahead of the crucial US payrolls data, set to influence the Federal Reserve’s next policy move.

Currently, gold prices stand at $1,932 per ounce, having experienced a session-high at $1,938 after a 0.1% decline on Thursday, marking three consecutive days of losses. The drop in prices was influenced by higher US treasury yields.

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Over the course of the week, gold prices have fallen by 1.4%, heading for the largest weekly loss in five weeks, as both the dollar and US treasury yields have strengthened.

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The dollar index rose 0.1% on Friday, approaching a four-week high against major rivals, thereby adding further pressure to gold prices.

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Recent US private sector employment data demonstrated the economy’s resilience and created suitable conditions for extended policy tightening in the world’s largest economy.

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Investors are eagerly awaiting the US payrolls data, as the economy is expected to have added 205 thousand new jobs in July, slightly slower than the 209 thousand added in June. The unemployment rate is anticipated to remain at 3.6%, while average hourly earnings are estimated to increase by 0.3%.

The SPDR Gold Trust, which tracks gold holdings, experienced a decline of 3.18 tons yesterday, bringing the total to 906 tons, the lowest since March 10.

In summary, gold prices are facing downward pressure due to the stronger dollar and higher US treasury yields, with investors closely monitoring the upcoming US payrolls data, which could provide further direction for the precious metal.

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