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Gold price was down by 0.7% by midday in New York, trading below the highs of the day of $1,727.84 and reaching as low as the psychological $1,700 level. The US dollar derived momentum from Wednesday’s strong in US yields which is putting a barrier up against gold’s recent resurgence.
The yellow metal broke the $1,700 level at the start of the week as investors started to discount from the Fed’s hawkish stance due to poor manufacturing data that was accompanied by a massive miss in the JOLTS data ahead of this week’s Nonfarm Payrolls.
US job openings fell to almost 10.1 million in August, according to the Bureau of Labor Statistics, below the consensus of 11.15 million and down from 11.17 million reported in July. The larger-than-expected decline could be the first sign that demand for labour is falling.
The weaker data has caused traders to bet the Federal Reserve may raise interest rates less than previously expected as the central bank turns more dovish as the US economy slows.
