Gold Falls in Limited Range Trading Ahead of US Jobs Data

Gold prices fell, moving in a narrow range, as investors held off making big bets focusing on important US jobs data due later in the week, a key indicator of the US Federal Reserve’s stance on policies ahead.

And gold fell in spot transactions 0.1 percent to $ 1810.92 an ounce, while US gold futures fell 0.5 percent to $ 1813.70.

“There is a lot of spare capacity in the labor market,” said Kyle Rhoda, analyst at IG Markets. “If there is a feeling that the Fed will continue to keep policy settings loose (in the) medium to long term, this is a really good dynamic for gold, in particular. If we see that inflation expectations are still relatively high.”

Large stimulus measures tend to support gold, which is usually seen as a hedge against inflation and currency instability.

Federal Reserve Governor Christopher Waller said on Monday the central bank could start reducing its support by October if the next two monthly jobs reports showed employment increasing by 800,000 to 1 million, as expected.

The dollar fell against the safe-haven Japanese yen and Swiss franc during the Asian trading session.

As for other precious metals, silver fell 0.5 percent to $ 25.31 an ounce, palladium rose 0.3 percent to $ 2682.32, while platinum fell 0.3 percent to $ 1054.22.