Gold slips to $930 level as dollar strengthened

Gold slips to $930 level as dollar strengthened

On Thursday bullion slipped toward $930 per ounce, weakening as the greenback strengthened broadly ahead of monthly U.S. jobs data that investors expect to provide more clarity on the pace of economic recovery.

At 6:41 a.m. Thursday morning spot gold steadied at $932.05. EDT, down from $939.95 late Wednesday in New York. Gold found support above $930 as investors awaited U.S. non-farm payrolls data at 8:30 a.m. EDT which could dictate moves for the dollar and gold.

Experts consider worse-than-expected data could stimulus safe-haven flows into the dollar, making gold relatively more expensive to holders of foreign currency.

While gold is also often bought as hedge asset, moves in the dollar have returned to the fore as the main price driver in recent months. Buck recovered from a near three-week low on Thursday, as traders booked profits ahead of the jobs data and a policy announcement from the European Central Bank at 7:45 a.m. EDT.

U.S. gold futures for August delivery edged down to $932.60 an ounce, down almost 1% from the settlement on the COMEX division of the New York Mercantile Exchange. 

The SPDR Gold Trust reported its holdings were traded at 1,120.55 tonnes as of July 1, unchanged from the previous business day. Europe's ETF Securities reported inflows into its three gold-backed ETFs on Wednesday.

Other industrial precious metals, such as silver, platinum and palladium, also weakened, pressured by the stronger dollar and reflecting losses on the base metals market.

Spot silver fell to $13.48 per troy ounce from $13.74 quoted in New York, while platinum dipped to $1,180.50 against $1,198.50, and palladium slid to $249.50 from $252.00.