Gold falls as the dollar rises due to low interest in risk

Gold prices fell on Tuesday as the dollar rose and bullion is likely to experience a volatile session in the run-up to Friday’s U.S. employment figures, which could dictate the Federal Reserve’s stimulus reduction plans. .

At 0643 GMT, spot gold was down 0.6% at $ 1,758.27 an ounce after hitting $ 1,770.41 on Monday, its highest since Sept. 23. Gold futures in the United States were down 0.6% at $ 1,757.30.

The dollar index rose, making gold more expensive for buyers with other currencies, while equity markets were in the red on concerns that rising energy prices could slow economic growth.

The downturn in stocks is driving Asian investors to buy dollars, putting pressure on gold, said Jeffrey Halley, senior market analyst for Asia-Pacific at OANDA, adding that the metal would be in a range of $ 1,750 to $ 1,785 before the United States employment report.

Aside from inflation, the fragile trade ties between the United States and China, the Evergrande debt crisis and the stalemate in the dialogue on the US debt ceiling also led to some inflows in gold, providing a floor for gold prices. ingots.

While the uncertainties will support gold to some extent, the direction offered by US monetary policy will be the one that will prevail in the end, Halley added.

Nonfarm payrolls are expected to show continued improvement in the labor market, which will likely allow the Federal Reserve to begin reducing stimulus before the end of the year.

Silver was down 0.8% at $ 22.48 per ounce, platinum was down 0.9% at $ 958.83 and palladium was up 0.1% at $ 1,906.45.