Mumbai, 3 Sep (Commoditiescontrol): Gold prices edged lower on Tuesday as investors awaited a series of U.S. economic reports that could influence the Federal Reserve's upcoming interest rate decision. Spot gold dipped 0.2% to $2,494.19 per ounce, retreating from its record high of $2,531.60 set on August 20. U.S. gold futures also slipped 0.1% to $2,526.10.
The U.S. dollar hovered near a two-week high, making gold less attractive for holders of other currencies. A stronger dollar and potential interest rate cuts, which reduce the opportunity cost of holding non-yielding assets like gold, have kept prices under pressure.
Investors are closely watching the U.S. non-farm payrolls report for August, due on Friday, which is expected to show an addition of 165,000 jobs. Other key data points include the ISM surveys, JOLTS job openings, and the ADP employment report, all of which will help shape market expectations for the Federal Reserve's policy meeting on September 17-18.
Market sentiment currently suggests a 31% probability of a 50-basis-point rate cut and a 69% likelihood of a quarter-point cut by the Fed. However, recent data showing an uptick in U.S. consumer spending in July has fueled doubts about the likelihood of a larger rate reduction.
Goldman Sachs reaffirmed its positive outlook on gold, citing it as a preferred hedge against geopolitical and financial risks. The investment bank highlighted support for gold from expected Fed rate cuts and continued central bank buying in emerging markets, recommending a long position in the metal.
Other precious metals also saw declines, with spot silver down 0.2% to $28.44 per ounce, platinum falling 0.8% to $922.27, and palladium slipping 0.5% to $974.29.
(By Commoditiescontrol Bureau: 09820130172)
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