Asian markets fell Thursday after a big drop on Wall Street in the wake of a weak U.S. private-sector jobs report, raising concerns about Friday’s crucial nonfarm payrolls data. Japanese equities were tormented by more volatility that also affected the yen and bond yields, dragging stocks closer toward a so-called bear market.
Gold for August delivery is trading down $1 at $ 1398 per ounce on the Comex division of the New York Mercantile Exchange. Yesterday, it climbed $1.30, or 0.1%, to settle at $1,398.50 an ounce. Earlier, it had climbed by as much as $13 to tap a high around $1,410.
Investors showed caution ahead of the European Central Bank’s meeting on Thursday, as well as official U.S. government employment figures due Friday that were likely to offer a hint as to what the Federal Reserve will decide to do with its bond-buying program.
Automatic Data Processing Inc. reported that the economy gained 135,000 jobs in May, below expectations for a gain of 170,000. Other data showed U.S. productivity reduced to 0.5% in the January to March period from a prior read of 0.7%, while the U.S. services industry accelerated a bit in May.
U.S. equities extended their losses into a second day on the back of those economic reports, luring some investors to the metals market. Weak jobs growth could further strengthen the case for the Fed to maintain its $85 billion-a-month bond-buying program.
MCX August gold futures may open today’s session near Rs 27600 levels with support near Rs 27540 levels.
Source by Commodity Insights
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