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Gold Trades Lower for Third Day as Investors Await Jobs Data

Written By Kontak Perkasa Futures on Tuesday, October 22, 2013 | 8:35 AM


Kontak Perkasa - Bloomberg (22/10) -- Gold held losses for a third day before U.S. employment data that may provide clues on the timing of a reduction in stimulus by the Federal Reserve. Palladium rose a fifth day, the longest rally in a month.

Bullion for immediate delivery traded 0.1 percent lower at $1,314.70 an ounce by 8:36 a.m. in Singapore, after gaining 3.5 percent last week in the best showing in two months. Palladium, the only metal that has advanced this year, climbed as much as 0.4 percent to $752.35 an ounce, the highest since Aug. 27.

U.S. September jobs data will be released today after being postponed because of a 16-day partial government shutdown that started Oct. 1 as lawmakers clashed over passing a budget and lifting the nation’s borrowing limit. The fiscal strife in Washington will probably delay the central bank’s paring of its monthly asset purchases, Fed Bank of Chicago President Charles Evans, an advocate of monetary stimulus, said in a CNBC interview yesterday.

“Bullion edges lower in lackluster trading ahead of the U.S. nonfarm payrolls release,” Howard Wen, an analyst at HSBC Securities (USA) Inc., wrote in a note. “The data will likely hold implications to the near-term direction of bullion as a disappointing jobs report may boost gold prices while a better-than-expected report may be a drag on prices.”
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 8:35 AM
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