Gold Dips Further Ahead Of NFP

LONDON (July 5) Gold futures dipped further in the early London trades today weighed down by strong US Dollar ahead of the release of the widely watched monthly U.S. jobs report.

Gold for August delivery fell $12 to $1,240 an ounce on the Comex division of the New York Mercantile Exchange. Yesterday COMEX floor session was closed for Independence Day, the trading will resume later Friday.

The U.S. dollar rose against key rivals Friday ahead of monthly jobs figures that will factor into the U.S. Federal Reserve’s assessment of its monetary-stimulus efforts. The ICE dollar index, which measures the U.S. unit against six other major currencies, jumped to 83.879 from 83.291 late Thursday in North America.

The gains in the indexes reflected drops by the euro and the British pound Thursday after the European Central Bank and the Bank of England each indicated there were no plans to reduce stimulus. ECB President Mario Draghi at a press conference Thursday said euro-zone interest rates will remain low or may even go lower.

The euro on Friday bought $1.2898, less than its $1.2914 level late Thursday. The U.S dollar also rose against the Japanese yen, buying ¥100.34 compared with ¥99.80.

MCX August gold is trading down nearly Rs 100 at Rs 26050 per 10 grams. The counter may find support near Rs 25900-850 levels and a resistance near Rs 26170 levels.

Investors on Friday will turn their attention to U.S. jobs figures for June and what they may mean for the future of monetary stimulus from the Federal Reserve