Gold hovered just above the US$4,000 mark during Tuesday's Asian deals, extending its four-session losing streak as a firmer United States dollar and renewed risk-off sentiment kept pressure on the precious metal ahead of Thursday’s delayed U.S. September Nonfarm Payrolls report.
By 3:50 pm AEDT (4:50 am GMT), spot gold was 0.9% lower at US$4,009.22 per ounce.
The metal remained close to Monday’s five-day low of US$4,006, struggling to draw support from broader risk aversion as the U.S. dollar continued its rebound.
Asian equity markets tracked Wall Street lower amid resurfacing concerns over the U.S. labour market and stretched AI valuations ahead of Nvidia’s results on Wednesday (Thursday AEDT).
The dollar also found support from a series of hawkish comments by Federal Reserve officials, which have pared back expectations for a December rate cut to 42.9%, according to the CME Group FedWatch Tool.
Fed Vice Chairman Philip Jefferson said Monday that the central bank needed to “proceed slowly” with further rate cuts.
Looking ahead, gold remains vulnerable to further declines as the U.S. dollar is expected to stay supported ahead of a batch of delayed U.S. economic releases.
Markets will also closely watch speeches from Fed officials for fresh clues on the policy outlook.
The main focus, however, will be Thursday’s September jobs report, which investors hope will provide clearer insight into labour market conditions after several weak private-sector employment readings.
