Gold prices slip as investors await US data

Gold prices declined on Tuesday early trade as investors awaited a series of US economic data releases that could influence the Federal Reserve’s decision on interest rate cuts.

Spot gold eased 0.2 per cent to $2,494.56 per ounce, while US gold futures remained relatively stable at $2,526.40. The US dollar hovered near a two-week high, making gold less attractive to holders of other currencies.

Analysts are closely watching the upcoming US August non-farm payrolls report, which is expected to show an addition of 165,000 jobs.

Other key economic indicators include the ISM surveys, JOLTS job openings, ADP employment report, and trade data.

Traders are currently pricing in a higher probability of a quarter-point rate cut by the Fed on September 17-18, compared to a 50-basis-point cut. However, recent data on US consumer spending has strengthened the case for a smaller rate cut.

Spot gold is currently supported at $2,473, and a break below this level could lead to a decline towards $2,434, according to technical analysis.

Silver fell by 0.3 per cent to $28.43, platinum dropped by one per cent to $921.20, and palladium decreased by one per cent to $968.92.

Attribution: Reuters

Subediting: M. S. Salama