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Markets

Gold slips on improving risk appetite, US jobs data in focus

  • Spot gold may revisit July 23 low of $1,789.98/oz
  • M&A rush, earnings power European stocks to new highs
  • Dollar down 0.2% against its rivals
Published Updated
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Gold prices fell on Monday as an increase in appetite for riskier assets weighed on the safe-haven metal, while investor focus turns to a key US employment report due later in the week to gauge the health of the labour market.

Spot gold was down 0.3% at $1,807.49 per ounce by 1150 GMT. US gold futures dipped 0.4% to $1,810.70 per ounce.

"Gold is still having some trouble to clearly surpass the resistance level of $1,820 and $1,835. Also, a risk-on scenario with European stocks ... is adding some pressure," Carlo Alberto De Casa, market analyst at Kinesis, said.

He added that in the case of a stronger than expected July US non-farm payrolls report, investors could take the view that the Federal Reserve would be forced to taper its stimulus measures sooner than previously forecast.

Sentiment in wider financial markets remained upbeat, with European stocks scaling fresh peaks, driven by dealmaking activity and strong results from Europe's biggest bank HSBC .

Gold dips as dollar holds ground; US jobs data in focus

The non-farm payroll numbers, due on Friday, are the last major jobs report before global central bank officials hold their annual meeting in Jackson Hole in late August. Economists in a Reuters poll forecast a 926,000 job increase.

Fed Chairman Jerome Powell said last week interest rate hikes were "ways away" and the job market still had "some ground to cover", which saw gold jump more than 1% last Thursday.

Lower US interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.

Offering some respite to gold, the dollar index slipped 0.2%. A weaker greenback makes gold less expensive for other currency holders.

Spot gold may revisit its July 23 low of $1,789.98 per ounce, as it failed again to break a resistance at $1,832.80, said Reuters technical analyst Wang Tao.

Elsewhere, silver fell 0.2% to $25.42 per ounce, palladium rose 0.7% to $2,678.50 and platinum gained 1% to $1,059.03.

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