KONTAN.CO.ID - JAKARTA. Gold on Wednesday was headed for its largest monthly decline since November 2016, as investors were wary ahead of the upcoming U.S. jobs data that could intensify fears over the U.S. Federal Reserve easing its asset purchases. Spot gold eased 0.2% to $1,758.39 per ounce by 9:56 am EDT (1355 GMT), having touched its lowest since April 15 at $1,749.20 on Tuesday. U.S. gold futures fell 0.3% to $1,757.80. Bullion prices are down about 7.7% for the month, with prices of the non-yielding asset weighed down by the Fed's sudden hawkish shift. But they are up 3% for the quarter.
"The dollar is rallying, the S&P 500 has consistently forged new record highs," said Phillip Streible, chief market strategist at Blue Line Futures in Chicago. The dollar index ticked 0.2% higher, making gold more expensive for other currency holders. Read Also: Indonesia considers broader curbs as coronavirus crisis deepens Additionally, hawkish Fed officials have re-affirmed they are going to raise rates in 2023 as well as start tapering bond purchases. "These are all things gold investors hate," Streible added. Investors now await the U.S. Labor Department's nonfarm payrolls due on Friday, which is expected to show a gain of 690,000 jobs in June compared with 559,000 in May, according to a Reuters poll of economists. The data follows suggestions from Federal Reserve officials that the U.S. central bank should begin tapering its asset purchase program this year. Elsewhere, silver rose 0.7% to $25.91 an ounce.