Gold dips on US dollar strength, Fed official's rate comment

Gold dips on US dollar strength, Fed official's rate comment
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BENGALURU (Aug 5): Gold prices inched lower on Thursday after the dollar firmed and remarks from a top U.S. Federal Reserve official signalled the possibility of bringing forward policy tightening.

Spot gold fell 0.1% to $1,810.50 per ounce by 0110 GMT. U.S. gold futures were down 0.1% at $1,812.40.

Bullion prices rose more than 1% in the previous session after the ADP National Employment Report showed U.S. private payrolls increased far less than expected in July.

Fed Vice Chair Richard Clarida said the conditions for raising interest rates could be met by the end of 2022, and suggested the central bank could start cutting back on asset purchase program later this year.

A measure of U.S. services industry activity jumped to a record high in July, boosted by the shift in spending to services.

The dollar index held firm on Clarida's comments, making gold more expensive for holders of other currencies.

Focus is now on U.S. non-farm payroll report, due on Friday.

COVID-19 cases worldwide surpassed 200 million on Wednesday, according to a Reuters tally, as the Delta variant threatens areas with low vaccination rates.

Perth Mint's sales of gold products in July fell 3% to their lowest level in nine months, while silver sales tumbled nearly 29% to touch a six-month low, the refiner said in a blog post on Wednesday.

Silver fell 0.1% to $25.33 per ounce, having hit a near three-week peak on Wednesday.

Platinum earlier hit an over seven-month low of $1,005.50 and was last down 1.6% at $1,008.99.

Palladium was flat at $2,645.67.