Gold prices fell on Monday as an increase in appetite for riskier assets weighed on the safe-haven metal, while investor focus is turning to a key U.S. employment report due later in the week to gauge the health of the labor market.
Spot gold was down 0.4% at $1,806.90 per ounce by 0930 GMT. U.S. gold futures U.S. gold futures dipped 0.4% to $1,810.10 per ounce.
Sentiment in wider financial markets remained upbeat, with European stocks scaling fresh peaks, driven by dealmaking activity and strong results from Europe’s biggest bank HSBC.
The non-farm payroll numbers, due on Friday, are the last major jobs report before global central bank officials hold their annual meeting in Jackson Hole in late August. Economists in a Reuters poll forecast a 926,000 job increase.
Fed Chairman Jerome Powell said last week interest rate hikes were “ways away” and the job market still had “some ground to cover”, which saw gold jump more than 1% last Thursday.
Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.
Offering some respite to gold, the dollar index slipped 0.1%. A weaker greenback makes gold less expensive for other currency holders.
The levels traders seem to be focused on are its July 23 low of $1,789.98 per ounce, and the resistance it failed again to break – $1,832.80.
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