Gold firms as dollar, yields retreat; US jobs report in focus

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Gold prices edged higher on Thursday,

buoyed by a pullback in the dollar and US Treasury yields,

while investors awaited the US non-farm payrolls report later

this week that could offer more cues on the Federal Reserve’s

rate hike plans.

FUNDAMENTALS

* Spot gold was up 0.2% at $1,767.97 per ounce, as of

0123 GMT. US gold futures rose 0.4% to $1,783.20.

* The dollar was down 0.1% against its rivals, making

greenback-denominated gold less expensive for other currency

holders, while benchmark US 10-year Treasury yields

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slipped from a more than one-week high.

* Data showed the US services industry unexpectedly picked

up in July as new orders grew solidly, while US factory orders

also rose in June, gaining 2% after advancing 1.8% in May.

* Focus now shifts to US jobs data due on Friday that

could offer more clarity on Fed’s aggressive tightening to fight

against inflation.

* Fed policymakers on Tuesday and Wednesday signaled that

the central bank remains resolute in getting US rates up to a

level that will more significantly curb economic activity and

put a dent in the highest inflation since the 1980s.

* SPDR Gold Trust , the world’s largest gold-backed

exchange-traded fund, said its holdings fell 0.2% to 1,000.65

tonnes on Wednesday from 1,002.97 tonnes on Tuesday.

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* US House of Representatives Speaker Nancy Pelosi left

Taiwan on Wednesday, adding that Chinese anger cannot stop world

leaders from traveling to the self-ruled island claimed by

Beijing.

* Analysts have sharply lowered their price forecasts for

platinum and palladium as the global economic slowdown reduces

demand, a Reuters poll showed.

* Spot silver eased 0.2% to $20 per ounce, platinum

was up 0.1% to $899.06, and palladium eased 0.1%

to $2,014.97.

DATA/EVENTS (GMT)

0130 Australia Trade Balance G&S June

0600 Germany Industrial Orders MM June

0600 Germany Manufacturing O/P Cur Price SA June

0600 Germany Consumer Goods SA June

0830 UK All-Sector PMI July

1100 UK BOE Bank Rate Aug

1230 US International Trade June

1230 US Initial Jobless Clm Weekly

(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi

Aich)