By Rachel Koning Beals
Gold futures traded at two-month lows Thursday after notching their first monthly loss since May in August, as data and commentary leading up to Friday’s jobs report offered fodder for the camp expecting higher interest rates this year.
Gold is at “its lowest level since the Brexit referendum. As such, [spot] gold was down by a good 3% overall in August,” said Carsten Fritsch and commodities team at Commerzbank, in a note.
“If the official U.S. labor market data that are due to be published tomorrow turn out to be as good as the ADP’s [private-sector hiring] figures that were published yesterday, the gold price is likely to come under further pressure,” Commerzbank wrote. “This is because this would presumably add further fuel to expectations of a U.S. Federal Reserve rate hike before September is out.”
The Labor Department on Friday is expected to say the world’s largest economy added 185,000 jobs in August; its report includes government hiring.