Gold, silver heads for worst week in over 3 months
U.S. nonfarm payrolls due at 1230 GMT
Dollar hits threeweek high
U.S. 10year Treasury yield rises above 1.6 Recasts, adds technicals, updates prices
June 4 Reuters Gold slipped to its lowest in more than two weeks on Friday, weighed down by a stronger dollar, while investors awaited U.S. nonfarm payrolls data for May as bets over possible tapering of stimulus measures by the Federal Reserve loom.
Spot gold was down 0.2 at 1,867.47 per ounce as of 0509 GMT, hitting its lowest since May 19 at 1,855.59 earlier in the session. Prices have fallen 1.8 so far this week.
U.S. gold futures eased 0.2 at 1,870.20 per ounce.
A much stronger dollar, a rise in U.S. Treasury yields along with a combination of generally overbought conditions in gold led to a rather decent selloff, EDF Man Capital Markets analyst Edward Meir said.
We also had hints from the Fed that it could be opening up to the possibility of tightening. We still are constructive on gold and see some buying if the declines continue.
The dollar index jumped to a threeweek high against its rivals, making gold more expensive for holders of other currencies, while the benchmark 10year yield rose to 1.63.
Data on Thursday showed the number of Americans filing new claims for unemployment benefits dropped below 400,000 last week, while U.S. private employers stepped up hiring in May.
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