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Gold Set For Third Weekly Loss On U.S. Outlook, NFP In Focus

Published 08/01/2014, 05:44 AM
Updated 07/09/2023, 06:31 AM

Gold trade near six-week low on Friday, headed for its third straight weekly drop, on signs of improvement in the U.S. economy, ahead of the awaited nonfarm payrolls figures.

The most recent data from the U.S. signaled that recovery in the world’s biggest economy is moving on the right track, therefore reducing the metal’s appeal as a safe harbor.

A report this week showed that the U.S. economy expanded 4.0 percent in the second quarter from a revised of 2.1 drop percent in the first quarter.

However, more attention will be given to the nonfarm payrolls data due later in the day, as it will provide an update on the status of the labor market.

The NFP may show that American employers added 231,000 jobs in July, following a 288,000 gain in June.

The data will mark a record above 200,000 jobs for a sixth straight month, raising expectations the Fed may reconsider the timing at which it would raise its interest rates.

Data released on Thursday showed that initial jobless claims in the past month dipped to an eight-year low, while labour costs recorded their biggest gain in more than 5-1/2 years in the second quarter.

Gold is currently trading around $1283.27, following a more than 1 percent fall the previous session.

The yellow metal is poised for its third weekly loss, the longest losing streak since September, while plummeted around 3.3 percent in July.

The dollar resumed its advance against majors, where it is currently trading around 1.3385 versus the European single currency.

Crude oil for September’s delivery was little changed on Friday to trade near the session’s opening around $98.00 a barrel.

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