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Gold slides in Asia ahead of American nonfarm payrolls
On Friday, gold decreased in Asia, with nonfarm payrolls ahead expected to set greenback direction considered significant for overseas buyers from key importers, including China and India.
August delivery gold futures slumped 0.39% in New York trading at $1,266.89 a troy ounce.
Overnight, the precious commodity traded modestly below breakeven, although remained close to seven-week maximums because market participants waited for nonfarm payrolls data for clues as for the strength of the US economy amid a sag in expectations the Fed will stick to its plan to lift rates once more in 2017.
The commodity struggled to for direction during early morning American trade because traders remained cautious of starting large positions in gold ahead of Friday’s nonfarm payroll data, expected to provide further prompts on the outlook for interest rate hikes.
In recent weeks gold inched up because investor uncertainty regarding the tempo of American interest rate lifts continued amid a storm of mixed economic reports driving expectations that the Fed could backtrack on its intention to lift rates later in 2017.
The market has started the week with a mixed sentiment…
The US NFP will be published on August 7 at 15:30 MT time.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.