* Palladium jumps more than 3% to hit one-month peak
* Volatility should be limited if gold holds above $1,750 – Analyst
October 11 (Businesshala) – Gold edged lower on Monday as the dollar on hopes the Federal Reserve will go ahead with its plan to ease economic support, despite lower than forecasts for US September jobs data.
Spot gold fell 0.2% to $1,752.68 an ounce as of 0942 GMT, while US gold futures were down 0.2% to $1,753.20.
Spot silver fell 0.6% to $22.53.
Bullion rose to its highest level since Sept. 22 on Friday after the latest US payrolls report, but gains were cut after investors came to terms with the possibility that the Fed may still have enough choice to provide stimulus to the economy. to be removed from.
Kinesis Money analyst Carlo Alberto de Casa said gold is seeing some “bearish pressure” after not being able to hold off Friday’s gains.
However, “a good portion of the tapering is already in the price” and as long as the bullion remains above $1,750, it is a positive for the metal, limiting “large volatility”, he said.
Gold is seen as a hedge against inflation and currency depreciation, potentially from broad stimulus to counter the economic damage from the pandemic.
Higher interest rates – as monetary policy tightens – translate into an increased opportunity cost of holding bullion, reducing its appeal.
The dollar benefited from declining bets, which also hurt gold’s appeal for holders of other currencies.
In contrast, palladium was up 3.6% to $2,152.25, hitting an all-time high of $2,182.67 since September 10. Platinum gained 0.4% to $1,030.47.
Saxo Bank analyst Ole Hansen said the chip shortage in the auto sector has not gone away.
“That’s why I’m struggling to see if this is a market that has attracted so many short positions,” said Saxo Bank analyst Ole Hansen.
“And now, as the momentum is changing, it is attracting buys in terms of short covering,” Hansen said.
Platinum and palladium are mainly used in engine exhaust to reduce emissions. (Reporting by Arundhati Sarkar and Eileen Soreng in Bengaluru; Editing by Kirsten Donovan)