The price of gold started Friday’s session already on the negative territory ahead of the key U.S. non-farm payrolls data, which is set to be released on the same day. The bullion is close to touch its two-month low.
Looking on metal prices, U.S. gold futures inched down by 0.1 percent to trade at $1,222.40 an ounce for its August delivery and Spot gold was lower as well by 0.2 percent to finish at $1,222.65 an ounce. Spot has declined as much as 1.5 percent over the course of the week and could be heading towards its largest weekly drop since last two months.
Private employers in the United States unexpectedly hired a small number of workers last June and applications for unemployment benefits in the previous week advanced for three straight weeks. This pointed on what seems to be a loss in momentum in employment growth as the jobs market was close to full employment.
The World Gold Council (WGC) said that an increase on gold sales taxes in India could restrict the nation’s short-term demand, given that they are the second largest metal consumer in the world. The demand of gold in India lost energy this week as consumers held back after stepping up purchases before the effectiveness of tax policies.
Meanwhile in other news, U.S. President Donald Trump pledged to confront North Korea “very strongly” after its ballistic missile test and urged countries to that there would be serious costs if Pyongyang continues its weapon programs. It is already given that geopolitical uncertainties like this somehow support the price of gold.