July 7, 2017 / 1:28 AM / 19 days ago

PRECIOUS-Gold prices dip ahead of U.S. non-farm payrolls data

3 Min Read

    BENGALURU, July 7 (Reuters) - Gold prices inched down early
on Friday to hover around their lowest in nearly two months,
with investors waiting for key U.S. non-farm payrolls data later
in the day. 
         
    FUNDAMENTALS    
    * Spot gold        had fallen 0.2 percent to $1,222.65 per
ounce by 0104 GMT. It has dropped 1.5 percent this week and
could be heading for its biggest weekly decline since early May.
    * U.S. gold futures         for August delivery declined 0.1
percent to $1,222.40 per ounce.
    * The dollar was steady in early Asian trade on Friday, on
track for weekly gains but likely to tread water throughout the
day as investors braced for the monthly U.S. employment
numbers.      
    * U.S. private employers hired fewer workers than expected
in June and applications for unemployment benefits last week
increased for a third straight week, pointing to some loss of
momentum in job growth as the labour market nears full
employment.             
    * U.S. Treasury yields rose on Thursday, with benchmark
yields touching nearly eight-week highs, on the prospect of
hawkish global central bank policy and concern that rising oil
prices could spur inflationary pressures.      
    * U.S. President Donald Trump vowed on Thursday to confront
North Korea "very strongly" following its latest missile test
and urged nations to show Pyongyang there would be consequences
for its weapons programme.             
    * Trump and Russian President Vladimir Putin are set to size
each other up in person for the first time on Friday in what
promises to be the most highly anticipated meeting on the
sidelines of the G20 summit.              
    * European Central Bank policymakers are open to a further
step towards reducing their monetary stimulus but are likely to
move slowly out of fear of causing market turmoil, minutes of
their last meeting showed on Thursday.             
    * China's central bank said on Thursday that it would
strengthen the ability to adjust interest rates and improve
efficiency of its medium-term lending facility (MLF), standing
lending facility (SLF) and reverse repos operations.
               
    * An increase in taxes on gold sales in India could curb
short-term demand from the world's No. 2 consumer of the metal,
the World Gold Council (WGC) said.             
    * Gold demand in India lost steam this week as consumers
held off after stepping up purchases ahead of a new tax policy
effective this month, while fresh buying in China also remained
sluggish despite a slide in global spot prices.         
    
    DATA AHEAD (GMT) 
     0600  Germany  Industrial output  May 
     0645  France   Industrial output  May 
     0645  France   Trade balance      May 
     0830  Britain  Industrial output  May 
     1230  U.S.     Nonfarm payrolls   June 
     1230  U.S.     Unemployment rate  June 

 (Reporting by Nithin Prasad in Bengaluru; Editing by Joseph
Radford)
  

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