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Metals Stocks: Gold moves lower with jobs data expected to provide the metal’s next directional cue

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Gold futures inched higher Thursday, with the dollar steady and bonds yields edging down, providing some support for precious metals. So far this week, gold has mostly traded sideways and analysts say that investors are awaiting the U.S. August employment report on Friday to determine the path forward for the Federal Reserve and bullion.

“Gold has been consolidating in recent days, as traders await Friday’s jobs report before taking the next leap,” wrote Craig Erlam, senior market analyst at Oanda, in a daily research report.

December gold
GCZ21,
-0.47%

 traded $2.30, or 0.1% higher, at $1,818.30 an ounce, following a decline of 0.1% on Wednesday.

Trading for gold came against the backdrop of a dollar that was flat on the session. The ICE U.S. Dollar Index
DXY,
-0.06%
,
a gauge of the buck against a half-dozen currencies, was little changed at 92.42, while the 10-year Treasury note yield
TMUBMUSD10Y,
1.298%

was at 1.29% from around 1.31% on Wednesday.

“A weak payrolls number could weigh further on the dollar and propel gold above $1,833 where it has repeatedly run into resistance over the last couple of months,” Erlam wrote.

Last Friday’s remarks from Fed Chairman Jerome Powell, at the Jackson Hole central-bankers symposium, revealed that he supports tapering the pace of bond purchases this year, but didn’t discuss when the Fed might formally announce the taper.

Commodity analysts say that Powell’s comments last week have made Friday’s U.S. monthly jobs update a key yardstick for those hoping to glean insights on the possible timing and scope of the Fed’s rollback of accommodations, which could influence trading in gold.

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