Gold gives up four-month peak ahead of US payrolls data

Gold prices fell in European trade for the first time in four days away from four-month highs, moving below $1,800 once more on active profit-taking. 

The precious metal is heading for the second weekly profit in a row as the dollar loses ground following latest remarks by Fed Chair Jerome Powell on slowing the pace of rate hikes in December. 

Investors await important official US payrolls data later today for November, which will provide fresh clues on growth.

Gold Prices Today

Gold prices fell 0.4% to $1,795 an ounce, with the highest since August 10 at $1,804 an ounce, as gold prices rose 2% yesterday, the third profit in a row, and the largest since November as dollar tumbles. 

Gold prices rose 2.25% so far this week, on track for the second weekly profit in a row. 

Dollar

The dollar index fell over 0.3% today on track for the third straight loss, plumbing six-month lows at 104.50 against a basket of major rivals. 

Fed Chair Jerome Powell said the pace of rate hikes will be slowed down starting from the December meeting as the bank rebalances its risks.

However he cautioned that monetary policies will remain tight for the time being until inflation is brought back to normality.

Following the remarks, markets now put an 80% chance of a 0.5% rate hike by the Fed in December, and a 20% only for a 0.75% rate hike.

Data

Now investors await for important US data on the labor sector to gauge the performance of the economy in this quarter. 

US non-farm payrolls are expected up 200 thousand in November, down from 261 thousand in October, while unemployment are expected at 3.7% with no change. 

The SPDR

Gold holdings at the SPDR Gold Trust fell 1.45 tones yesterday to a total of 906.64 tones, the lowest since November 21.