An employee holds one kilogram gold bullion at the YLG Bullion International Co. headquarters in Bangkok, Thailand, on Dec. 22, 2023. - Photographer: Chalinee Thirasupa/Bloomberg
GOLD extended declines on Thursday, pressured by a stronger dollar, while investors were cautious ahead of key U.S. economic data that might provide clues about the size of the Federal Reserve's interest rate cuts expected later this year.
Spot gold fell 0.5% to $2,645.39 per ounce by 0812 GMT. U.S. gold futures edged 0.2% lower to $2,665.60.
The dollar hit a one-month high, making greenback-priced bullion more expensive for other currency holders.
Gold is consolidating at this point but prices will likely retest an all-time high of $2,685 as charts show persistent strong upward trends, said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.
Investors are watching out for the ISM services data and the initial jobless claims, due later in the day, along with the U.S. non-farm payroll data expected on Friday.
Data on Wednesday showed U.S. private payrolls increased more than expected in September - further evidence that labour market conditions were not deteriorating.
Expectations of another 50-basis-point rate cut at the Fed's November meeting have dipped, with markets currently pricing in a 36% chance, down from 49% last week, according to CME's FedWatch Tool.
Gold tends to thrive in a low interest rate environment and political turmoil.
"Middle East tensions and U.S. elections will continue supporting bullion in the longer term... In the short-term, some funds might shift to oil from gold since oil is doing better," Lan said.
Israel bombed central Beirut, killing at least six, after its forces suffered the deadliest day on the Lebanese front in a year of clashes against Iran-backed armed group Hezbollah.
Perth Mint's gold product sales touched a 10-month peak in September, while silver sales hit a seven-month high.
Spot silver fell 1.2% to $31.49, platinum shed about 1% to $992.10 and palladium lost 2.2% to $992.93. - Reuters
