US Jobs Data Looms as Gold Prices Hold Firm Amid Dollar Weakness
Gold prices remained steady on Wednesday (August 5), supported by a weaker US dollar and ongoing geopolitical tensions. The COMEX gold futures price was $4,152.30 an ounce, almost unchanged from the previous session after reaching an intraday high of $4,158.90 an ounce.
The softer dollar made dollar-denominated metals cheaper for overseas buyers, but gains were capped as traders held back from taking large positions ahead of key US economic data releases this week.
Markets are now focused on the ADP private payrolls report due later on Wednesday and the closely watched US non-farm payrolls data on Friday, which could provide fresh clues on the strength of the world's largest economy.
Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions, expects gold to find support around $4,000 an ounce and face resistance near $4,200 an ounce, while silver is likely to trade between $55 and $63 an ounce unless a major macroeconomic trigger emerges.
Darshan Desai, CEO of Aspect Bullion & Refinery, said the medium-term outlook for bullion remains positive despite short-term profit booking. He cited continued central bank purchases, safe-haven buying, expectations of lower interest rates over time, and a relatively weaker dollar as supporting factors for gold prices.
Silver, however, traded marginally lower after recent gains, slipping 0.32% to $60.055 an ounce on COMEX.