SINGAPORE: Gold prices fell to a more than one-week low in Asian trade on Tuesday, dented by the dollar's gains and with the focus turning to US jobs report that could offer a clearer picture on the Federal Reserve's next move on monetary policy.
Spot gold was down 0.5% at $1,768.90 per ounce by 0832 GMT, after touching $1,766.20, its lowest since June 21, earlier in the session. US gold futures fell 0.7% to $1,767.80.
"Market participants are reluctant to build new positions due to gold's repeated failure to break above the psychologically important $1,800 level, upcoming labour market data and inflation," Commerzbank analyst Carsten Fritsch said.
He said the dollar level was still pretty strong and hampering gold.
Gold is often seen as a hedge against inflation, although a rate hike by the Fed would increase the opportunity cost of holding bullion and dull its appeal.
"Bearish pressure may continue this week ... Expect gold to resume its downward trend this week as risk sentiment firms and markets continue to look towards the prospects of tightening monetary conditions from the Fed," Howie Lee, an economist at OCBC Bank, said in a note.
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