BENGALURU: Gold slipped on Monday as the dollar firmed after strong US payrolls data last week, offsetting some of the support for zero-yield bullion from bets that the Federal Reserve may pause rate hikes in June, according to Reuters.
Spot gold was down 0.2 percent to $1,944.59 per ounce by 12:46 p.m. Saudi time, close to its lowest level since May 30. US gold futures shed 0.6 percent to $1,958.60.
“Gold bulls’ shoulders slumped after yet another red-hot headline nonfarm payroll print fueled a rebound in the dollar,” said Han Tan, chief market analyst at Exinity.
“For the immediate term, spot gold is testing its 100-day moving average for support.”
Gold dropped more than 1 percent on Friday after data showed the US economy added 339,000 jobs last month, above estimates of 190,000.
On Monday, the dollar index was up 0.2 percent, making greenback-priced bullion less affordable for overseas buyers.
Benchmark US yields meanwhile were near a one-week high.
But providing a floor for bullion prices, the chances of the Fed holding interest rates at their current level at its June 13-14 meeting were pegged at 79.4 percent, according to the CME FedWatch Tool.
Non-interest-bearing bullion tends to become less attractive in a high-interest rate environment.
“To see higher gold prices, we need to see the Fed getting more dovish, which likely requires weaker economic data,” said UBS analyst Giovanni Staunovo.
Global shares rose as investors bet on a rate-hike pause and after Saudi Arabia pledged the biggest reduction in its oil output in years.
Silver fell 0.4 percent to $23.50 per ounce, platinum rose 0.6 percent to $1,009, and palladium gained 0.3 percent to $1,424.15.
Amid prospects for an economic slowdown in Europe and the US, an extended period of softening industrial demand could remove some support for silver prices from factors such as growth in solar cell production, Heraeus said in a note.
