Gold down as caution prevails ahead of US jobs data

Gold prices retreated today, Thursday, from their highest level in nearly seven months, with the rise of the dollar and the reluctance of investors ahead of the closely watched US jobs data, which may affect the path of raising interest rates by the Federal Reserve.

According to Reuters, spot gold fell 0.3 percent to $1,848.59 an ounce by 0924 GMT, after hitting its highest level since June 13 in the previous session. US gold futures fell 0.3 percent to $1,854.10.

Minutes of the Federal Reserve’s December 13-14 monetary policy meeting, released last night, showed that policy makers remain focused on curbing the pace of price increases that may turn out to be more frantic than expected.

“The minutes of the meeting did not give us anything new to work on,” said Ole Hansen, head of commodity research at Saxo Bank, adding that the market is trying to figure out the reason behind gold’s previous moves at the beginning of the year.

He said that the metal witnessed some profit-taking sales after it reached $1865 levels.

The dollar index rose 0.1 percent, putting pressure on gold. And the rise of the dollar makes gold more expensive for buyers than holders of other currencies

Spot silver fell 1.1 percent to $23.49 an ounce, platinum rose 0.1 percent to $1,077.62, and palladium rose 0.4 percent to $1,795.88.