News ID: 93040
Publish Date : 04 August 2021 - 22:31

NEW YORK (CNBC) - Gold prices edged higher on Wednesday due to a weaker dollar, although gains were kept in check ahead of U.S. jobs data later this week, seen as pivotal to the Federal Reserve’s monetary policy strategy.
Spot gold rose 0.3% to $1,815.40 per ounce by 1129 GMT, while U.S. gold futures were up 0.2% to $1,817.50.
Gold has very little direction ahead of the jobs data and if U.S. yields continue on their downward track, it’s likely to head back towards the recent peaks at $1,835, CMC Markets UK’s chief market analyst Michael Hewson said.
Hewson said a break above technical resistance at $1,835 could trigger a leg higher toward $1,870 for gold.
The dollar index was hovering around recent lows, boosting gold’s appeal by making it cheaper for those holding other currencies.
“The boost for gold is likely driven in part by hedging as traders cover some of their exposure to stock markets,” ActivTrades technical analyst Pierre Veyret said in a note.
Friday’s U.S. non-farm payroll report could provide investors with clearer signals, following dovish commentary from Fed Chief Jerome Powell last week.
Economists in a Reuters poll forecast a 926,000 job increase in July’s non-farm payroll numbers.
Fed officials said the labor market would take time to heal from the effects of the pandemic.
“Gold’s price action remains consolidative but structurally positive and that points to further gains ahead. The converging 100- and 200-day moving averages suggest a breakout is coming and Friday’s U.S. data will be a catalyst,” said Jeffrey Halley, senior market analyst for Asia Pacific at OANDA.
Elsewhere, silver gained 0.7% to $25.74 per ounce, Palladium rose 0.6% to $2,663.31, and platinum fell 0.4% to $1,045.40.

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