Gold gains cautious ground ahead of US data

Gold prices rose in European trade on Thursday for the first time in three days amid active buying efforts around the $2300 barrier, while facing pressures from the stronger dollar.

Investors now await important US labor data later today, which could include important clues on the future of US interest rates.

Prices 

Gold prices  rose 0.5% today to $2319, with a session-low at $2307, after losing 0.25% on Wednesday, the second loss in a row amid mounting pressure from the dollar.

The Greenback

The dollar index rose 0.2% on Thursday, extending gains for the third straight session and scaling a week high at 105.72 against a basket of major rivals.

A stronger dollar makes greenback-denominated futures costlier to holders of other currencies. 

Dollar’s gains came alongside similar advances by US 10-year treasury yields following bullish remarks by Fed officials. 

US Rates

The odds of a Fed 0.25% interest rate cut in June stood at 9%, and at 32% for July, and at 66% for September according to the Fedwatch tool.

Investors now barely expect two interest rate cuts this year, mainly in September and November.

US Unemployment Claims 

Later today, important US unemployment claims will be released, useful for gauging the health of the US labor sector, and it should provide fresh pricing for Fed interest rate cuts. 

The SPDR

Gold holdings at the SPDR Gold Trust remained flat yesterday at 830.47 tonnes.