Gold dips as dollar firms on Fed official’s hawkish comment

Gold dips as dollar firms on Fed official’s hawkish comment

Gold prices were under pressure on Thursday after hawkish remarks from a top U.S. Federal Reserve strengthened the dollar, with investors now focusing on non-farm payrolls data for cues on the labour market's recovery. Spot gold fell 0.1% to $1,809.91 per ounce by 0654 GMT, while U.S. gold futures fell by a similar margin to $1,812.10. "The bulls are not able to take this market beyond the $1,810-$1,815 range and are waiting for a fresh trigger," said Jigar Trivedi, a commodities analyst at Mumbai-based broker Anand Rathi Shares. "If the nonfarm payrolls come on the higher side gold will likely see a sharp sell-off, falling to $1,790, with a drop to $1,760 also being a possibility." Gold prices jumped more than 1% in the previous session on disappointing ADP National Employment Report, but pared gains following Fed Vice Chair Richard Clarida's remarks that conditions for raising interest rates could be met by the end of 2022. He and three other Fed members also suggested a move to taper bond buying later this year or early next depending on the recovery in the labour market. Higher interest rates raise the opportunity cost of holding non-interest bearing gold. The dollar index held