PRECIOUS-Gold dips 1% as robust U.S. jobs data eases recession concerns


Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

    * U.S. unemployment rate falls to pre-pandemic low of 3.5%
    * Platinum eyes third straight weekly gain
    * Dollar index  .DXY  up 0.8%
    * Palladium up more than 3%

 (Updates prices)
    By Ashitha Shivaprasad
    Aug 5 (Reuters) - Gold prices extended losses to slide more
than 1% on Friday as an unexpectedly strong U.S. jobs report
eased recession worries and dashed speculation that the Federal
Reserve would pivot away from its aggressive monetary policy
    Spot gold  XAU=  fell 0.9% to $1,775.09 per ounce by 1:43
p.m. ET (1743 GMT), after falling as much as 1.5% earlier in the
day. U.S. gold futures  GCv1  settled down 0.9% at $1,791.2.
    "Gold had recently rallied on the thought that the Fed will
shift from hawkish to dovish. But the jobs data shows the U.S.
economy is strong, and this can prompt the Fed to be more
aggressive, which is not a good story for gold," said Bart
Melek, head of commodity strategy at TD Securities.
    An environment marked by high interest rates hurts bullion
as it yields no interest.
    U.S. employers hired far more workers than expected in July,
with the unemployment rate falling to a pre-pandemic low of
    The positive employment picture gives the Fed further scope
to raise interest rates without the risk of tipping the economy
into recession, and gold's upside gains are likely to be capped
at $1,800, Rupert Rowling, market analyst at Kinesis Money, said
in a note. 
    The dollar index  .DXY  was up 0.8%, making gold more
expensive for overseas buyers, while U.S. Treasury yields
extended their rise after the data.  USD/   US/ 
    On the physical side, gold premiums in China rose this week
on safe-haven demand driven by rising tensions with the United
States over Taiwan.  GOL/AS*:nL4N2ZH2H8
    "If there is a pop-up in geopolitical issues, then this will
help gold, but it won't be a sustained rally ... The next
catalyst for gold prices will be (the) U.S. CPI print coming out
next week," Melek added, referring to consumer prices data. 
    Spot silver  XAG=  fell 1.4% to $19.87 per ounce, en route
to falling for the week. 
    Platinum  XPT=  rose 0.2% to $927.98, on track for its
biggest weekly gain since early June.
    Palladium  XPD=  rose nearly 3% to $2,125.95.

 (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by
David Holmes and Paul Simao)

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.