Spot gold eased 0.1% to $1,819.98 per ounce by 2:04 p.m. EDT (1804 GMT). U.S. gold futures settled 0.2% lower at $1,831.80 per ounce.
“The whole narrative of holding rates higher for longer is the big reason why people are removing positions from gold as the opportunity cost of holding it has risen,” Bart Melek, head of commodity strategies at TD Securities, said.
Since advancing above the key $2,000-per-ounce level in early May, gold prices have fallen nearly 12% as a hawkish rhetoric on rates from the Fed has lifted bond yields to their highest level in 16 years. [US/]
The number of Americans filing new claims for unemployment benefits rose moderately last week, while layoffs declined in September, pointing to still-tight labor market conditions.
Market focus now shifts to September’s nonfarm payrolls report on Friday, which is expected to show that employers added 170,000 jobs.
If the jobs data comes stronger than expected, then market expectation of one more hike will rise, and with that gold prices could dip below $1,800, added Melek.
Offering some respite to gold, the dollar index fell for the second straight session, making bullion less expensive for other currency holders.
“For me to turn decidedly bullish on gold, we now need to see a solid bullish reversal candle on the daily timeframe, and this needs to be backed by further evidence that (Treasury) yields have topped out,” Fawad Razaqzada, market analyst at City Index, wrote in a note.
Spot silver lost 0.1% to $20.94 per ounce.
Platinum fell 0.8% to $859.72, after hitting its lowest in a year. Palladium slipped 1.8% to fresh five-year lows at $1,146.73.
