Gold falls, Dollar firms
JOHANNESBURG Gold prices fell on Wednesday as a firmer Dollar dampened greenback-priced bullion’s appeal for overseas buyers, while investors awaited US jobs report to gauge the Federal Reserve’s policy tightening path.
Spot gold was down 0.4 per cent at US$1 719.30/oz, as of 4.01am GMT. The bullion price hit its highest since September 13 at US$1 729.39/oz in the previous session.
US gold futures dipped 0.1 per cent to US$1 728.30/oz. cuts of up to 2-million barrels per day (bpd), an OPEC source told Reuters.
A cut of that magnitude would be the biggest made by Opec+ since demand was hit by COVID-19 in 2020.
“I will not be surprised if “buy the rumour, sell the fact” could happen since the strong rally in the crude prices may have priced in such a production cut,” Tina Teng, an Analyst at CMC Markets, said.
The US is pushing Opec+ producers to avoid making deep cuts, a source familiar with the matter told Reuters, as President Joe Biden looks to prevent a rise in US petrol prices. The real effect on supply from a lower output
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Resistance
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The Dollar index edged 0.2 per cent higher, after the unit shed 1.3 per cent overnight to mark its biggest drop since March 2020. target would be limited as several Opec+ countries are already pumping well below their existing quotas.
Target
In August, Opec+ missed its production target by 3.58-million bpd.
However an agreement on big cuts “would send a strong message that the group is determined to support the market,” ANZ Research analysts said in a note, adding that it “would significantly tighten the market.”
US crude oil stocks fell by about 1.8 million barrels for the week ended September 30, according to market sources citing American Petroleum Institute figures on Tuesday.
Gold could break above the resistance level of US$1 735/oz in case of a weak ADP employment data, City Index Analyst Matt Simpson said, adding markets are very sensitive to employment data at the moment.
The ADP National Employment Report, due at 12.15pm GMT, comes on the heels of a government survey that showed US job openings fell by the most in nearly two-and-a-half years in August, hinting at a cooling labour market.T
his will be followed by the US labour department’s closely watched nonfarm payrolls (NFP) data scheduled to be released on Friday.