PRECIOUS-Gold subdued on firmer dollar; focus on U.S. jobs report

  • Reuters
  • Commodities News
PRECIOUS-Gold subdued on firmer dollar; focus on U.S. jobs report
Credit: © Reuters.

May 6 (Reuters) - Gold prices inched lower on Thursday due to a stronger dollar, while investors awaited the release of U.S. non-farm payrolls data for April due later this week.

FUNDAMENTALS

* Spot gold XAU= was down 0.1% at $1,785.05 per ounce by 0126 GMT.

* U.S. gold futures GCv1 was steady at $1,785.10 per ounce.

* The dollar index .DXY hovered close to a two-week high, making gold more expensive for other currency holders. USD/

* U.S. private payrolls surged by the most in seven months in April as companies rushed to boost production amid a surge in demand, suggesting the economy gained further momentum early in the second quarter, powered by massive government aid and rising COVID-19 vaccinations. Investors look forward to Friday's U.S. monthly jobs report, which is expected to show nonfarm payrolls increased by 978,000 jobs last month. The U.S. economy may be growing more quickly and unemployment falling faster than the core of Federal Reserve policymakers projected in March, Fed Governor Michelle Bowman said on Wednesday. Meanwhile, Chicago Federal Reserve Bank President Charles Evans on Wednesday reiterated his worries about reaching the Fed's 2% inflation goal and said he expects monetary policy to stay super-easy for some time. Lower interest rates decrease the opportunity cost of holding non-yielding bullion.

* The Bank of England will say on Thursday Britain's economy is heading for a much stronger recovery this year than it previously expected and it might start to slow its pandemic emergency support. Palladium XPD= fell 0.1% to $2,968.78 per ounce, after scaling an all-time high of $3,017.18 per ounce on Tuesday, driven by supply shortfalls.

* Silver XAG= was down 0.5% at $26.37 per ounce, while platinum XPT= dipped 0.4% to $1,220.16.

DATA/EVENTS (GMT) 1100 UK

BOE Bank Rate

May 1100 UK

GB BOE QE Corp

May 1230 US

Initial Jobless Clm Weekly

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