• MTS Gold Evening News 20160603

    3 Jun 2016 | Gold News


 

Gold slipped early Friday and was headed for its fifth straight weekly decline, as the dollar and Asian stocks steadied and the market awaited the U.S. non-farm payrolls data due later in the day.

The dollar index held near a two-month peak, leaving it poised for a breakthrough should non-farm payrolls due later in the day bolster expectations for an imminent hike in U.S. rates. U.S. private employers increased hiring in May and new applications for jobless benefits fell last week, further boosting the economic outlook for the second quarter.

Gold was nearly unchanged on Friday but headed for a fifth consecutive weekly decline, as the dollar and Asian stocks held firm and the market awaited US nonfarm payroll data.

Investors remained cautious ahead of the US labour data, a strong reading of which could push the Federal Reserve to hike interest rates sooner rather than later — a move that would be bearish for noninterest bearing gold.

"A good jobs figure could help cement the case in investors’ minds for a June or July Fed rate hike. This was likely to weaken gold and the $1,200/oz level could be tested," said HSBC analyst James Steel.

"A hard break may be only temporary as long term the outlook for gold is positive," Steel added, however.

Spot gold could consolidate further in a range of $1,205-$1,219/oz, as suggested by a Fibonacci retracement analysis, Reuters technical analyst Wang Tao said.

"We haven’t seen a bottom of gold yet and $1,200 has been holding well," said Brian Lan, MD at Singapore-based gold dealer GoldSilver Central.

"Depending on data tonight we will see how the market closes. If it closes above $1,200, then next week will be critical with news from Yellen expected," Lan said.

Yellen is due to speak on Monday, the last chance for the Fed to communicate with markets before it begins a blackout period ahead of its policy meeting on June 14-15.


Reference: Commodity online, Reuters

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