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Gold dips on dollar strength, Fed official's rate comment

The dollar index held firm on Clarida's comments, making gold more expensive for holders of other currencies
Last Updated : 05 August 2021, 02:10 IST
Last Updated : 05 August 2021, 02:10 IST

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Gold prices inched lower on Thursday after the dollar firmed and remarks from a top US Federal Reserve official signalled the possibility of bringing forward policy tightening.

Spot gold fell 0.1 per cent to $1,810.50 per ounce by 6:40 am. US gold futures were down 0.1 per cent at $1,812.40.

Bullion prices rose more than 1 per cent in the previous session after the ADP National Employment Report showed US private payrolls increased far less than expected in July.

Fed Vice Chair Richard Clarida said the conditions for raising interest rates could be met by the end of 2022, and suggested the central bank could start cutting back on asset purchase program later this year.

A measure of US services industry activity jumped to a record high in July, boosted by the shift in spending to services.

The dollar index held firm on Clarida's comments, making gold more expensive for holders of other currencies.

Focus is now on US non-farm payroll report, due on Friday.

Covid-19 cases worldwide surpassed 200 million on Wednesday, according to a Reuters tally, as the Delta variant threatens areas with low vaccination rates.

Perth Mint's sales of gold products in July fell 3 per cent to their lowest level in nine months, while silver sales tumbled nearly 29 per cent to touch a six-month low, the refiner said in a blog post on Wednesday.

Silver fell 0.1 per cent to $25.33 per ounce, having hit a near three-week peak on Wednesday.

Platinum earlier hit an over seven-month low of $1,005.50 and was last down 1.6 per cent at $1,008.99.

Palladium was flat at $2,645.67.

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Published 05 August 2021, 02:10 IST

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