Recasts, adds comments and updates prices
By Ashitha Shivaprasad
July 8 (Reuters) – Gold was bound for its worst week in more than a year on Friday, hurt by the dollar’s ascent and as bets for steep interest rate hikes gained traction after healthy U.S. jobs data.
Spot gold XAU= was little changed at 1,737.39 per ounce by 9:56 a.m. ET (1356 GMT), after falling about 0.3% earlier in the session. Bullion has lost 4% so far this week, which would be its worst since mid-June last year.
U.S. gold futures GCv1 fell 0.1% at $1,737.50.
Lately gold has failed to attract safe-haven flows despite growing recessions risks as investors have instead opted for the dollar, which has marched to fresh two-decade highs. .DXY USD/
“The jobs data pushed down gold, already struggling after such a strong dollar rally. However, there is some bargain hunting coming through in gold here,” said RJO Futures senior market strategist Bob Haberkorn.
U.S. job growth increased more than expected in June and the unemployment rate remained near pre-pandemic lows, signalling persistent labour market strength that give the Federal Reserve ammunition to deliver another 75-basis-point rate increase later this month. nL1N2YO2M6
Higher interest rates sour the appeal of gold by translating into increased opportunity cost of holding the asset since it yields no interest. nS0N2YH08G
On the technical front, gold’s break below the $1,760 level could signal a further slide to $1,720, and potentially towards the 2021 lows near $1,680, said Michael Hewson, chief market analyst at CMC Markets UK.
In physical markets, demand improved slightly in India after domestic prices eased, while concerns over fresh coronavirus outbreaks kept a leash on activity in top consumer China. nL4N2YP1J8
Spot silver XAG= fell 0.5% to $19.11 per ounce, while platinum XPT= rose 1.2% to $884.03, both headed for weekly losses.
Palladium XPD= rose 4.9% to $2,089.35, and was set for its third straight week of gains.
(Reporting by Ashitha Shivaprasad and Arundhati Sarkar in Bengaluru; Editing by Vinay Dwivedi)
This article originally appeared on reuters.com