• Gold fell on Friday, set for its biggest weekly loss in two months, as investors sought higher returns from a firmer U.S. dollar and rising Treasury yields and awaited American non-farm payroll data later in the day.
• "We are somewhat concerned about gold's ability to hold up and see more weakness that could set in, especially if Friday's payroll number sets off another spike in U.S. yields," INTL FCStone analyst Edward Meir said in a note.
• Higher yields seem to be the prime negative driver in gold for the moment, he added. Dollar-denominated bullion typically loses value when the greenback and U.S. Treasury bond rates rise since the yellow metal does not bear interest.
• Spot gold fell 0.3 percent to $1,220.55 per ounce at 0505 GMT. It has dropped 1.7 percent this week and is set for its biggest weekly decline since the week of May 5.
• Silver was down 0.7 percent at $15.89 per ounce after hitting a 15-month low earlier during the session. It was down 4.1 percent this week.
• Investors are looking ahead to the monthly U.S. employment data later on Friday after downbeat private payroll figures overnight pointed to some loss of momentum in job growth as the labor market nears full employment.
• "The primary focus will be on the wage growth component given the Fed's overriding concern about inflation," said Stephen Innes, head of trading for Asia Pacific at OANDA in Singapore, adding "the G-20summit should not be ignored."
• Spot gold may fall into a range of $1,204 to $1,211 an ounce, as suggested by its wave pattern and a Fibonacci projection analysis, according to Reuters technical analyst, Wang Tao.
• "Gold has been weighed down by overall bearish sentiment toward the sector, with a spike higher in bond yields over the last fortnight contributing to the soft tone," said Jordan Eliseo, chief economist at gold trader ABC Bullion.
• U.S. Treasury yields rose on Thursday with benchmark yields touching nearly eight-week highs, while the dollar gained in Asian trading on Friday.
Reference: Reuters
Thai
Eng