By Gina Lee
Investing.com – Gold was up on Wednesday morning in Asia. While receiving a boost from a weakening dollar, the yellow metal was stuck in a narrow range as investors await the latest U.S. jobs data.
Gold futures inched up 0.09% to $1,815.80 by 12:49 AM ET (4:49 AM GMT). The dollar, which usually moves inversely to gold, inched down on Wednesday and was near recent lows.
“Gold, like the currency markets, appears to be in wait-and-see mode... gold’s price action remains consolidative but structurally positive and I believe that points to further gains ahead. The converging 100- and 200-day moving averages suggest a breakout is coming and I believe Friday’s U.S. data will be a catalyst,” OANDA senior market analyst for Asia Pacific Jeffrey Halley told Reuters.
On the data front, investors await the ADP non-farm employment change for July, alongside the Markit composite manufacturing purchasing managers' index (PMI), the services PMI and the Institute of Supply Management (ISM) non-manufacturing PMI, due later in the day.
The data comes ahead of the latest U.S. jobs report, due on Friday.
With Fed Chairman Jerome Powell reiterating that interest rate hikes are “ways away” as the Fed handed down its policy decision during the past week, other Fed officials also chimed in.
The labor market would take time to heal from the effects of COVID-19 and more is needed to be done for the economy to get fully back on track, U.S. Federal Reserve Governor Michelle Bowman said on Tuesday. Bowman’s views were also echoed by San Francisco Fed President Mary Daly.
The Bank of England and Reserve Bank of India will hand down their policy decisions on Thursday and Friday respectively.
In Asia, China’s Caixin services purchasing managers’ index (PMI), released earlier in the day, was 54.9 in July. The reading was higher than the 50.3 figure from the previous month.
Holdings in SPDR Gold Trust (P:GLD) fell 0.2% to 1,027.97 tons on Tuesday.
In other precious metals, silver gained 0.4% and platinum inched up 0.1%. Palladium edged up 0.2% to $2,652.99 per ounce after hitting a one-week high of $2,707.28 during the previous session.