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Gold holds just under $2000 ahead of nonfarm

Published on Jun 02, 2023 17:24

Gold futures lingers just below $2000 an ounce in early Europe trades today as traders await the US nonfarm payrolls data for further clarity over the case for the Fed to hold rates steady at its meeting this month. The precious metal jumped nearly $20 yesterday to end the session at $1995.50 an ounce since dollar index lost nearly 1% closing the last session at 103.5 on disappointing US PMI data.

COMEX gold front month contract was seen trading at $1995.80 an ounce up $0.2 or 0.03%. U.S. factory activity contracted for the sixth consecutive month in May, indicating ongoing struggles in the economy. The Institute for Supply Management reported that the manufacturing Purchasing Managers` Index (PMI) fell to 46.9, the lowest since March, below the expected 47.00. This contraction reflects weakening demand, high inflation, and rising interest rates.

The metal is seen trading in a very narrow range and a breakthrough may come later today ahead of crucial data release from US. On data front today, US await non-farm payrolls, unemployment rate which will be the tone setter for dollar, gold and other commodities.

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