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Gold and silver slide as firmer dollar and profit-taking return
Comex gold futures gave back gains to trade around $4,290 per troy ounce, while silver slipped to $61.12 after earlier touching $63.
Gold and silver prices fell on August 6 after investors booked profits following a recent rally tied to easing worries about inflation and US interest rates, LiveMint Markets reported. Comex gold futures erased intraday gains, sliding back to around $4,290 per troy ounce after climbing to a six-week high of $4,363.
Silver futures also retreated, moving to $61.12 per troy ounce after testing the $63 level earlier in the session, the highest in more than a month. A rebound in the US dollar index added pressure on dollar priced metals, with the index edging higher to 99.8 after dropping to a seven week low earlier in the week.
The selloff came as Middle East tensions appeared to ease, with the market taking cues from reports that Iran has entered a final stage of drafting an agreement with Oman to reopen the Strait of Hormuz, according to the Associated Press as cited by LiveMint Markets. At the same time, weak US job growth, including ADP data showing 44,000 private sector jobs added in July, pushed traders to trim expectations for a September Federal Reserve rate hike.
Investors are now watching the US nonfarm payrolls report for further signals on labor market strength, LiveMint Markets said. The story also noted that Federal Reserve Governor Lisa Cook said the Fed remains prepared to support higher interest rates if inflation does not cool toward the 2% target, while the policy rate was left unchanged last week at 3.50% to 3.75%.
Latest closeGold $4,292.00 ▲1.1%|Silver $61.56 ▼0.9%|Dollar index 99.98 ▲0.3%