Gold slips as dollar firms; market looks to US data

Reuters

Gold slips as dollar firms; market looks to US data

2024 10월 28 일, 오전 2:57 GMT

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Gold in good shape to make push towards $2,800 - analyst

Dollar index eyes largest monthly rise since April 2022

U.S. employment report, PCE data due this week

China Jan-Sept gold consumption slides 11%

Updates prices and graphics

By Daksh Grover

Oct 28 (Reuters) -Gold prices fell on Monday as the U.S. dollar held firm, while investors awaited U.S. economic data for fresh insights on the Federal Reserve's monetary policy path.

Spot gold XAU= fell 0.3% to $2,739.23 per ounce, as of 0742 GMT. Bullion hit a record high of $2,758.37 last Wednesday.

U.S. gold futures GCv1 declined 0.1% to $2,751.50.

The dollar index .DXY was on track for its best month since April 2022. A stronger dollar makes gold less appealing for other currency holders. USD/

"The U.S. dollar has continued its good run of form in the aftermath of the Japanese election, which has dented gold's appeal," said Tim Waterer, chief market analyst at KCM Trade.

"Gold still looks in good shape to potentially make a push towards $2,800 and beyond but it will first have to navigate a batch of key macro data this week, which could have interest rate implications for the Fed."

Data lined up for the week includes the U.S. employment report, job openings, and core Personal Consumption Expenditures (PCE) data, which are vital for assessing the labour market's health and inflation trends.

Traders now see a nearly 98% chance of a 25-basis-point cut by the Fed in November. Lower rates raise the relative appeal of non-yielding bullion. FEDWATCH

Gold drew some support from uncertainty surrounding the U.S. election on Nov. 5, with recent polls showing a tight contest between Donald Trump and Kamala Harris. Bullion is considered a hedge against political and economic uncertainty.

On the physical front, China's gold consumption dropped 11.18% year-on-year in the first three quarters of 2024 as high prices reduced jewellery demand, according to the state-backed gold association.

Spot silver XAG= was down 0.4% to $33.58 per ounce and platinum XPT= gained 0.2% to $1,024.45.

Palladium XPD= shed 0.6% to $1,186.35 an ounce after hitting a 10-month high in the previous session.

Spot gold price in USD per oz https://reut.rs/4eUX6Hh

Reporting by Daksh Grover in Bengaluru; Editing by Rashmi Aich, Sumana Nandy, Nicholas Yong

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