Gold gives up two-week high ahead of US jobs data

Gold prices fell in European trade on Friday for the first time in three days away from two-week highs on active profit-taking as US 10-year treasury yields rebounded.

Markets now await the crucial US payrolls report on Friday, an important gauge for the health of the economy. 

Prices 

Gold prices fell 1.4% today to $2342 an ounce, with May 23 highs at $2387. 

The precious metal rose 0.85% on Thursday, the second profit in a row following the European Central Bank’s interest rate cut.

US Yields 

US 210-year treasury yields rose 0.4% today away from two-month lows at 4.275%, pressuring the non-yielding assets.

The gains come ahead of the crucial US monthly jobs data, which the Fed relies on to gauge the conditions of the US labor sector.

US Rates 

The odds of a 0.25% Fed interest rate cut in September now stands at 67%, and the odds of such a cut in November stands at 80%. 

The Federal Reserve is convening next week to discuss future policies and the developments of the economy, and it’s widely expected to maintain rates flat. 

US Jobs Data

Later today, the US payrolls report is eagerly awaited, expected to show the addition of 182 thousand new jobs to the economy in May.

The unemployment rate is expected at 3.9%, while average hourly earnings are expected up 0.3% last month. 

The SPDR

Gold holdings at the SPDR Gold Trust rose by 3.46 tonnes yesterday to a total of 537.11 tonnes, the highest since May 17.