Gold Retreats as Dollar Firms ahead of Key US Economic Data

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)
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Gold Retreats as Dollar Firms ahead of Key US Economic Data

Gold bullion displayed in a store in the German city of Pforzheim (dpa)
Gold bullion displayed in a store in the German city of Pforzheim (dpa)

Gold extended declines on Thursday, pressured by a stronger dollar, while investors were cautious ahead of key US economic data that might provide clues about the size of the Federal Reserve's interest rate cuts expected later this year.

Spot gold fell 0.5% to $2,645.39 per ounce by 0812 GMT.

US gold futures edged 0.2% lower to $2,665.60.

The dollar hit a one-month high, making greenback-priced bullion more expensive for other currency holders.

Gold is consolidating at this point but prices will likely retest an all-time high of $2,685 as charts show persistent strong upward trends, said Brian Lan, managing director at Singapore-based dealer GoldSilver Central, according to Reuters.

Investors are watching out for the ISM services data and the initial jobless claims, due later in the day, along with the US non-farm payroll data expected on Friday.

Data on Wednesday showed US private payrolls increased more than expected in September - further evidence that labour market conditions were not deteriorating.

Expectations of another 50-basis-point rate cut at the Fed's November meeting have dipped, with markets currently pricing in a 36% chance, down from 49% last week, according to CME's FedWatch Tool.

Gold tends to thrive in a low interest rate environment and political turmoil.

"Middle East tensions and US elections will continue supporting bullion in the longer term... In the short-term, some funds might shift to oil from gold since oil is doing better," Lan said.

Israel bombed central Beirut, killing at least six, after its forces suffered the deadliest day on the Lebanese front in a year of clashes against Iran-backed armed group Hezbollah.

Perth Mint's gold product sales touched a 10-month peak in September, while silver sales hit a seven-month high.

Spot silver fell 1.2% to $31.49, platinum shed about 1% to $992.10 and palladium lost 2.2% to $992.93.



Saudi Oil Giant Aramco Posts Third-Quarter Profits of $27.5 Billion

The Saudi Aramco logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. (Reuters)
The Saudi Aramco logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. (Reuters)
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Saudi Oil Giant Aramco Posts Third-Quarter Profits of $27.5 Billion

The Saudi Aramco logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. (Reuters)
The Saudi Aramco logo is pictured at Hyvolution exhibition in Paris, France, February 1, 2024. (Reuters)

Saudi Arabian oil giant Aramco reported third-quarter profits of $27.5 billion on Tuesday, down about 15% from last year as low oil prices ate into its revenues.

Aramco had revenues of $111.1 billion over the quarter, the company said in a filing on Riyadh's Tadawul stock exchange. It had $113 billion in revenues the same quarter last year.

Profits for the third quarter last year were $32.5 billion.

The profit decrease “was mainly due to the impact of lower crude oil prices and weakening refining margins,” Aramco said.

Profit for the first nine months of 2024 was $83.9 billion, down from $94.5 billion the year before.

Oil prices have been depressed over recent days as tensions in the Middle East appear to have receded slightly and as China's economy has slowed. Benchmark Brent crude traded Tuesday at around $75 a barrel.

Aramco will pay dividends of $20.28 billion for the third quarter and a performance-linked dividend of $10.77 billion, the company said. It has said it hopes its overall dividend for the year will be over $124 billion.