Gold price dips after nearing seven-week highs, U.S. jobs data awaited

New York (Aug 3)  Gold fell on Thursday after nearing a seven-week high in the previous session as investors squared positions ahead of U.S. jobs data which should give further clues on the outlook for interest rate rises. Gold has rallied through most of July as the dollar fell on reduced expectations for a U.S. rate increase this year.

U.S. inflation has been contained even as the labour market appears to be in its best shape in many years, with the jobless rate staying near a 17-year low and double-digit U.S. earnings growth in the second quarter.

A slower pace of rate hikes tends to boost gold by lowering the opportunity cost of holding non-yielding bullion and by weighing on the dollar, making dollar-priced gold cheaper for non-U.S. investors.

CNBC