Gold Down, Near Over Two-Month Low as Investors Await U.S. Jobs Data

Gold was down on Wednesday morning in Asia, near an over two-month low and headed towards its worst monthly drop since November 2016. Investors now await U.S. jobs data for further clues on the U.S. Federal Reserves monetary policy moving forward.

Gold futures were down 0.26% to $1,758.95 by 12:53 AM ET (4:53 AM GMT), after falling to their lowest level since Apr. 15 on Tuesday.

The yellow metal was down 7.5% for June, still feeling the effects of a surprisingly hawkish policy decision handed down by the Fed earlier in the month. It was, however, up 3.3% for the second quarter of 2021.

“Gold has consolidated near the lows since the Feds strategy shift on monetary policy and it is now awaiting U.S. economic data for further guidance,” DailyFX currency strategist Ilya Spivak told Reuters.

“The non-farm payrolls data is going to be the main driver for the market in the near term, if it shows higher wage inflation and strong job growth, well see the next floor in gold,” Spivak added, in reference to the U.S. jobs report for June due on Friday.

Meanwhile, investors also digested Fed Governor Christopher Wallers comments on Tuesday, with Waller “very optimistic” about the U.S. Economy and predicting the central bank could start hiking interest rates in 2022.

On the technical side, golds inability to break through the 100-day moving average was a bearish sign that could prompt exchange-traded fund investors, who have been patient thus far, to join in on the selling, ANZ analysts said in a note.

In other precious metals, platinum was up 0.3% but was set for both its biggest monthly and quarterly drop since March 2020. Silver rose 0.3% while palladium firmed 0.5, on course for a fourth consecutive quarterly gain.