Gold slips on firmer dollar ahead of US payrolls data

Gold prices fell on Thursday as the dollar firmed ahead of a much awaited U.S. non-farm payrolls report, as investors sought clarity on whether the Federal Reserve might take a breather on its monetary tightening path.

FUNDAMENTALS

Spot gold was down 0.3% at $2,014.79 per ounce, as of 0101 GMT, after hitting an over one-year high on Wednesday. U.S. gold futures were steady at $2,034.70.

The dollar index was 0.1% higher, making bullion expensive for overseas buyers.

The U.S. services sector slowed more than expected in March as demand cooled, while a measure of prices paid by services businesses fell to the lowest in nearly three years.

The ADP National Employment report on Wednesday showed that U.S. private employers hired far fewer workers than expected in March, suggesting the labour market was cooling.

Investors now await Friday’s non-farm payrolls report for March, with economists polled by Reuters expecting new jobs of about 240,000.

Markets see a 54.2% chance of the Fed standing pat on interest rates in May, according to the CME FedWatch tool.

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