Gold Dips as Market Awaits Jobs Data and Powell Speech

France's government, meanwhile, faces likely collapse as far-right and left-wing parties filed no-confidence motions against Prime Minister Michel Barnier.

SEATTLE (Scrap Monster): Gold eased on Wednesday as a slight recovery in the U.S. dollar outweighed safe-haven demand while markets await U.S. jobs data and comments from Federal Reserve Chair Jerome Powell for clues on the the U.S. central bank's policy outlook.

Spot gold lost 0.1% to $2,641.79 an ounce by 0902 GMT. U.S. gold futures were down 0.2% at $2,663.70.

The dollar index reflected strength that makes dollar-priced bullion costlier for buyers with other currencies.

'Gold prices have been weighed down by the stronger dollar narrative, though still supported by safe-haven bids, in light of the latest bouts of political turmoil in South Korea and France,' said Exinity Group Chief Market Analyst Han Tan.

South Korean lawmakers urged President Yoon Suk Yeol to resign or face impeachment after he briefly declared and then reversed martial law, sparking a political crisis.

France's government, meanwhile, faces likely collapse as far-right and left-wing parties filed no-confidence motions against Prime Minister Michel Barnier.

Elsewhere, traders await the U.S. ADP employment report due at 1315 GMT alongside Powell's speech. Friday's monthly payroll data and next week's CPI data are also on investors' radar.

'Spot gold may continue trading within the $2,600-$2,700 range unless the incoming NFP and CPI figures drastically alter the odds of a Fed rate cut on Dec. 18,' Tan added.

Traders see about a 74% chance of the Fed reducing interest rates by 25 basis points, CME Group's FedWatch Tool shows.

U.S. central bankers on Tuesday expressed confidence in declining inflation and hinted at support for future rate cuts without committing to immediate action.

The appeal of non-yielding bullion increases when interest rates are low.

Spot silver fell 0.6% to $30.85 an ounce, platinum lost 0.4% to $949.65 and palladium was down 0.3% at $969.05.

Courtesy: www.reuters.com

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