The prices of gold struggled close to the lowest level in four weeks on Thursday retain sharp losses during the night, as strong US economic data worries the Federal Reserve enhance interest rates when it meets on September 16-17.
Gold for December delivery on the Comex Exchange inched up $4.30, or 0.39%, to trade at $1,106.30 a troy ounce.
Spot gold was little changed at $1,106.10 an ounce, after losing 1.4 per cent in the previous session – its biggest daily drop since July 20.
The data showed that the number of job postings in the US It reached the highest level in July.
The report boosted optimism about the health of the job market and support in the case of a rate hike later this month. The timing of a rate hike by the Fed has been a constant source of debate in the markets in recent months.
Gold tumbled to five and a half years low of $ 1072.30 on July 24 on speculation that the Federal Reserve will raise interest rates in September for the first time since 2006.
Many merchants expected next policy statement the central bank of the United States on September 17 looking for clues about when to a rise in interest rates in the US, before taking any large positions in gold.
Interest among investors in gold has been tepid. SPDR Gold Trust, backed exchange-traded on the world’s largest gold fund, said its holdings dropped 0.61 percent to 678.18 tonnes on Wednesday – the largest decline since August 12.
A downturn in Asian equities on Thursday was unable to sustain gold, often seen as a safe haven.
After yesterday’s steep decline in domestic gold market took support from a weaker rupee. MCX gold with a slight edge, is trading around Rs 26,080. But in the international market Gold is at its lowest level in the last 1 month.
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