Oct 5 (Reuters) – Gold slipped on Wednesday as the dollar steadied, but bullion hovered above key level of USD 1,700 per ounce as investors held off making bigger moves ahead of US jobs data that could influence the Federal Reserve’s policy tightening path.
Spot gold was down 0.2% at USD 1,722.49 per ounce, as of 0625 GMT. Bullion lost some ground after rallying to its highest since Sept. 13, at USD 1,729.39, on Tuesday.
US gold futures dipped 0.1% to USD 1,728.10.
The dollar index stabilised somewhat after marking its biggest drop since March 2020 overnight.
Gold could break above the key resistance level of USD 1,735 in case of a weak ADP employment data, City Index analyst Matt Simpson said, adding markets are very sensitive to employment data at the moment.
The ADP National Employment Report, due at 1215 GMT, comes on the heels of a government survey that showed US job openings fell by the most in nearly 2-1/2 years in August, hinting at a cooling labour market.
This will be followed by the US Labor Department’s closely watched nonfarm payrolls (NFP) data later in the week.
“In case of a miss, traders will probably assume a weak NFP on Friday and that could weaken the dollar as traders get more excited about a Fed pivot and strengthen gold,” Simpson said.
US Fed officials recently reiterated their pledge to bring stubbornly high inflation under control.
While gold is traditionally seen as a hedge against inflation, rising US rates have dimmed the appeal of the zero-yielding asset. Gold is down 6% for the year so far.
On the physical front, sources told Reuters that gold-supplying banks have cut back shipments to India and focusing on China, Turkey, and other markets where better premiums are offered.
Spot silver slipped 1% to USD 20.89 per ounce, platinum fell 0.4% to USD 926.63 and palladium was 0.3% lower at USD 2,310.31.
(Reporting by Eileen Soreng in Bengaluru; Editing by Sherry Jacob-Phillips)
This article originally appeared on reuters.com