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PRECIOUS-Gold falls after U.S. jobs data, Fed minutes limit losses
April 5, 2017 / 7:33 PM / 8 months ago

PRECIOUS-Gold falls after U.S. jobs data, Fed minutes limit losses

    * Failure to break 200-day moving average weighs
    * U.S. jobs data beats expectations
    * Dollar retreat after Fed minutes supports
    * Safe haven demand underpins prices ahead of Trump-Xi

 (Recasts with Fed minutes; updates prices)
    By Devika  Krishna Kumar and Peter Hobson
    NEW YORK/LONDON April 5 (Reuters) - Gold fell from one-month
highs on Wednesday after better-than-expected U.S. jobs data
boosted U.S. bond yields and the dollar but losses were limited
after minutes from the Federal Reserve's March policy meeting
were released. 
    Bullion pared some losses after the Fed's minutes showed
most policymakers think the central bank should take steps to
begin trimming its $4.5 trillion balance sheet later this year
as long as the economic data holds up.             
    Spot gold        was down 0.3 percent at $1,251.74 an ounce
at 2:57 p.m. EDT (1857 GMT), while U.S. gold futures        
ended the session 0.8 percent lower at $1,248.50 an ounce.
    Earlier in the session, the ADP National Employment Report
showed that U.S. private employers added 263,000 jobs in March,
beating economists' forecasts of 187,000 additions.             
    "ADP was what had blown away expectation and that's really
what sent it lower and put a small bid underneath the dollar
index," said Phillip Streible, senior commodities broker for RJO
Futures in Chicago.
    "Throughout the day we've been trading at either side of
$1,250, it seems like gold bulls and bears are comfortable
trading around that psychological level"
    U.S. 30-year Treasury yields and the U.S. dollar hit session
highs immediately after the Fed minutes were released but gave
up most gains later in the session.                     
    A stronger dollar makes gold more expensive for holders of
other currencies, while higher bond yields dampen demand for
non-yielding bullion.
    Gold touched $1,261.15, its highest since Feb. 27, on
Tuesday but failed to close above its 200-day moving average,
currently at $1,258, for the third time in less than six weeks.
    Gold has risen 8.8 percent so far this year and has held
just under its 200-day moving average since late March.
    But some investors were cautious ahead of U.S. non-farm
payrolls data due on Friday, where sharp gains in employment
would bolster the case for rate rises and likely boost the
    Gold was supported however by demand for safe assets after a
chemical attack in Syria appeared to put Russia and the United
States on a diplomatic collision course and North Korea fired a
ballistic missile into the sea ahead of a summit between U.S.
President Donald Trump and Chinese President Xi Jinping.
    Spot silver        was down 0.3 percent at $18.23 an ounce,
having touched a one-month high of $18.41 in the previous
    Platinum        slipped 0.3 percent to $956 an ounce, while
palladium        was up 0.5 percent at $808.20.

 (Additional reporting by Nallur Sethuraman in Bengaluru;
Editing by Susan Thomas and Lisa Shumaker)

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