Dubai: Gold price flat ahead of US jobs data

Waheed Abbas /Dubai Filed on September 2, 2021
File photo

The Dubai Gold and Jewellery Group data showed 24K opening at Dh219.25 per gram

Gold prices were flat on Thursday morning as investors were largely on the sidelines awaiting the US non-farm payrolls print that is crucial for Federal Reserve's tapering timeline.

Spot gold was steady at $1,812.77 per ounce, down 0.03 per cent, at 9.35 am UAE time on Thursday morning.

In the UAE, the Dubai Gold and Jewellery Group data showed 24K opening at Dh219.25 per gram on Thursday morning. Among the other variants of the precious metal, 22K was trading at Dh206.0 per gram, 21K at Dh196.75 and 18K at Dh168.5.

“Investors are eagerly waiting for the payroll numbers to be released later this week. A disappointing number may likely provide the US Federal Reserve with an excuse to delay the withdrawal of its ultra-loose monetary policy and hence would have a negative impact on the US dollar,” said Naeem Aslam, chief market analyst at AVA Trade.

The dollar dropped to its lowest in nearly three weeks after the dovish stance taken by the Fed related to its monetary policy.

While US jobless claim figures are due at 1230 GMT later in the day, the Labour Department will release the non-farm payrolls report for August on Friday.

"Market is waiting for the payrolls data to be released to get a bit of a guide on how ultimately inflation expectations will be set," ANZ analyst Daniel Hynes told Reuters.

The median payrolls forecast of 80 economists polled by Reuters is for 728,000 jobs to have been created in August.

Fed chief Jerome Powell said last week the labour market recovery would determine when the US central bank with a start cutting on its asset purchase.

"We're still expecting to see CPI remain relatively high, so for the remainder of the year, that will slowly drag up inflation expectations ... That's likely to see gold push higher," Hynes added.

On the technical front, spot gold may test a resistance at $1,826 per ounce. A break above could lead to a gain at $1,841, according to Reuters technical analyst Wang Tao.

Waheed Abbas

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