Gold edged lower on Thursday following a short-covering rally in the previous session, weighed down by concerns the U.S. Federal Reserve could soon begin tapering its monetary stimulus on strong economic data.
Bullion prices rose the most in over a month on Wednesday despite strong data on U.S. private-sector hiring and service industry growth in the run up to the nonfarm payroll data on Friday.
The short-covering gains came after gold hit fresh five-month lows for three straight sessions. “The markets are still positioned quite short. There is going to be a bigger reaction to a weaker-than-expected nonfarm payrolls report than to stronger-than-expected numbers,” said Victor Thianpiriya, an analyst at ANZ.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.