* Gold investors already slashing pricing – Analyst
* US non-farm payroll data due 1230 GMT (adds comment, updates prices)
October 8 (Businesshala) – Gold prices edged higher on Friday, with the dollar falling slightly, while investors focused on US labor market data due later in the day, which was expected to ease monetary stimulus. was considered important to the Federal Reserve’s schedule.
Spot gold was up 0.4% to $1,762.49 an ounce as of 1124 GMT, while US gold futures were up 0.2% to $1,762.60.
The dollar softened, boosting gold’s appeal to holders of other currencies.
Gold appears to have found some support on an advisor’s comments that a default on China Evergrande’s offshore bond obligations was “imminent”.
StoneX analyst Ronna O’Connell said, “Gold is trading in a narrow range and bargain hunting is falling towards $1,750, but there is little inclination to take an aggressive position, especially with non-agriculture on the horizon.” With payroll report.”
Fed Chairman Jerome Powell said a $120 billion reduction in the US central bank’s monthly bond purchases would require another “decent” jobs report to speed up the process.
If the data moves upward, gold may face a knee-jerk reaction as bond yields will probably rise, but “a miss will be helpful for gold as the term ‘stagflation’ is increasingly appearing on the radar.” The Giving and the Risk of Gold Benefits – Quote”, O’Connell added.
A Businesshala poll estimated that non-farm payrolls are expected to add 500,000 jobs in September.
However, some analysts believe that the outlook for gold is skewed, as the Fed may eventually raise interest rates.
Lower incentives and higher interest rates raise bond yields, which translates into the increased opportunity cost of holding bullion, which pays no interest.
Fitch Solutions said in a note on October 7 that safe-haven gold would find some support from higher inflation, geopolitical tensions and rising delta coronavirus cases, factors including Fed tapering, easing pandemic restrictions and strong growth lowering prices.
Spot silver fell 0.1% to $22.57 an ounce.
Platinum rose 2.6% to $1,004.81 and palladium gained 4% to $2,038.12. (Reporting by Arundhati Sarkar in Bengaluru; Editing by Kevin Liffey)