Gold falls as investors await U.S. jobs data

Reuters2021-08-03

Aug 3 (Reuters) - Gold prices were subdued on Tuesday, as the dollar held steady while investors avoided taking big positions ahead of the key U.S. non-farm payroll data due later this week, although growing concerns over rising coronavirus cases limited decline.

FUNDAMENTALS

Spot gold fell 0.2% to $1,810.56 per ounce by 0121 GMT, while U.S. gold futures fell 0.5% to $1,813.80.

U.S. Federal Reserve Governor Christopher Waller on Monday said the central bank could start to reduce its support for the economy by October if the next two monthly jobs reports each show employment rising by 800,000 to 1 million, as he expects.

U.S. manufacturing activity grew at a slower pace in July for the second straight month as raw material shortages persisted, though there are signs of some easing in supply-chain bottlenecks.

The dollar was on the back foot against the safe-haven yen and Swiss franc following soft U.S. manufacturing data and rising concerns about the coronavirus Delta variant.

The U.S. states of Florida and Louisiana were at or near their highest hospitalization numbers of the pandemic on Monday, due to the still-spreading Delta variant.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 1,029.71 tonnes on Monday from 1,031.46 tonnes on Friday.

Silver fell 0.4% to $25.33 per ounce, palladium rose 0.2% to $2,680.32, while platinum was down 0.6% to $1,050.83.

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