Gold Prices Still Lower But Downside Seen Limited

MasterMind Update – ✅ Gold prices were lower on Thursday, but losses were expected to be limited as sentiment on the U.S. dollar remained vulnerable after the release of mixed U.S. economic reports.

Comex gold futures were down 0.16% at $1,316.50 a troy ounce by 09:00 a.m. ET (13:00 GMT), off the previous session’s three-and-a-half month peak of $1,323.00.

Payrolls processor ADP reported on Thursday that U.S. private employers added 250,000 jobs in December, well above economists’ expectations.

A separate report showed that U.S. jobless claims increased by 3,000 last week to 250,000, disappointing expectations for a 6,000 decline.

The U.S. dollar briefly recovered after Fed policymakers acknowledged, in the minutes of the Federal Reserve’s December meeting released Wednesday, that the U.S. labor market and economic activity remain strong, despite persistently low inflation.

The minutes seemed to suggest that the central bank will continue to raise rates gradually but the pace could pick up if inflation rises.

Market watchers were now looking ahead to U.S. nonfarm payrolls data due on Friday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.23% at 91.68, re-approaching Tuesday’s four-month trough of 91.47.

Read More: Price of Gold Fundamental Daily Forecast – Upbeat U.S. data, Fed Minutes Pressuring Gold

Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.

Elsewhere on the Comex, silver futures slipped 0.19% to $17.23 a troy ounce. – Neal Bhai Reports