XAUUSD’s Trending at Low Before US Employment Data

by on August 1, 2014 10:00 am BST

XAUUSD slid 28 percent last year on expectations an improving economy would warrant less debt purchases and higher interest rates. The Federal Reserve said this week it will trim bond buying for a sixth time. The metal fell a fourth day yesterday, even as global equities tumbled amid disappointing corporate earnings and concern about an Argentinian default.

A report may show today US employers added more than 200,000 jobs for a sixth month after data showed yesterday a four-week average of jobless claims sank to an eight-year low. Bullion slipped 3.4 percent in July in the biggest monthly drop this year as the dollar gained the most since May 2013 against a basket of 10 major currencies.

XAUUSD for immediate delivery added 0.2 percent to $1,284.91 an ounce by 9:17 a.m. in London. It reached $1,279.30, the lowest since June 19, and is down 1.7 percent this week.

Bullion reached a three-month high on July 10 as tension over Ukraine and in the Middle East spurred haven demand. A three-day cease-fire between Israel and Palestinian militants in the Gaza Strip began today, the U.S. and United Nations said.

Silver for immediate delivery was little-changed at $20.4041 an ounce in London. Platinum rose 0.3 percent to $1,464.50 an ounce. Palladium rose 0.1 percent to $874.11 an ounce. It rose the past six months in the longest such run since January 2011 and reached a 13-year high of $889.75 on July 17.