By Gina Lee
Investing.com – Gold was down on Tuesday morning in Asia, with investors awaiting the latest U.S. jobs report to predict the U.S. Federal Reserve’s next policy move.
were down 0.49% to $1,813.35 by 1:15 AM ET (5:15 AM GMT), remaining above the $1,800 mark.
Investors had been somewhat appeased by Fed Chairman Jerome Powell’s insistence that interest rate hikes were a “ways away” as the Fed handed down its during the previous week, liftings the yellow metal to a two-week peak.
“Every data point we get from here until the Fed’s Jackson Hole symposium will be crucial… there’s a lot of spare capacity in the labor market… if there’s the sense that the Fed will continue to keep policy settings accommodative medium to longer-term, that’s a really good dynamic for gold prices, especially if we see inflation expectations remain relatively elevated,” IG Market analyst Kyle Rhoda told Reuters.
However, Fed Governor said on Monday that the central bank could begin asset tapering by October 2021 if the next two U.S. jobs report each show employment rising by 800,000 to 1 million.
The latest jobs report, including , will be released on Friday.
In Asia Pacific, the kept its interest rate unchanged at 0.10% as it handed down its policy decision earlier in the day. The and will hand down their decisions on Thursday and Friday respectively.
Holdings of SPDR Gold Trust (P:) fell 0.2% to 1,029.71 tons on Monday, an indication of investor sentiment.
“In less than a week, gold has gone from a potential breakout and breakdown candidate on the charts to a buy the dips, sell the rallies market… gold futures are practically moving along a flat 200-day EMA which is further indicative of a consolidating market,” Phillip Futures senior commodities manager Avtar Sandu told Reuters.
In other precious metals, silver and platinum fell 0.5%, while palladium inched up 0.1%.
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