Gold retreats as caution prevails ahead of the release of US jobs data

Gold prices retreated on Thursday from their highest level in nearly seven months as the dollar strengthened and investors shied ahead of closely watched US jobs data, which could affect the path of the Federal Reserve’s interest rate hike.

Spot gold fell 0.3 percent to $1,848.59 an ounce by 0924 GMT, after hitting its highest since June 13 in the previous session. US gold futures fell 0.3 percent to $1,854.10.

Minutes of the Federal Reserve’s December 13-14 monetary policy meeting, released last night, showed that policy makers remain focused on curbing the pace of price increases that may turn out to be more frantic than expected.

“The minutes of the meeting didn’t give us anything new to act on,” said Ole Hansen, head of commodity research at Saxo Bank, adding that the market was trying to figure out the reason behind gold’s earlier moves at the start of the year.

He said that the metal witnessed some profit-taking sales after it reached $1865 levels.

The dollar index rose 0.1 percent, putting pressure on gold. The rise of the dollar makes gold more expensive for buyers than holders of other currencies.

Spot silver fell 1.1 percent to $23.49 an ounce, platinum rose 0.1 percent to $1,077.62, and palladium rose 0.4 percent to $1,795.88.