The price of gold was moving lower Friday morning even as the U.S. dollar was trading weak versus a basket of currencies ahead of the release of the non-farm payroll report, later today. A weak reading on jobs data would likely prompt the Federal Reserve to continue its $85 billion monthly bond purchases to support the US economy.
Gold for August delivery, the most actively traded contract, eased $4.30 to $1,411.50 an ounce. Yesterday, gold settled above the $1,400-mark for the first time in three days as investors sought the safe haven appeal of the precious metal with global equity markets declining sharply. Gold futures made gains as the dollar continued to slide against a basket of some major currencies, while the euro soared after the European Central Bank left its interest rate unchanged.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, moved down to a fresh three year low of 1,007.74 tons from 1,010.45 tons.
Meanwhile, the U.S. dollar dipped back near a four month low versus the euro and sterling, while lingering around a two-month low against the Swiss franc. The buck moved back toward a two-month low versus the yen.
In economic news from the euro zone, Germany's foreign trade surplus declined less than forecast in April, data from the Federal Statistical Office showed. The trade surplus fell to EUR 18.1 billion in April from EUR 18.8 billion in March. Economists had forecast a decline to EUR 17 billion.
Germany's industrial output growth accelerated to 1.8 percent month-on-month in April from 1.2 percent in March, the Ministry of Economics and Technology. Production was forecast to remain flat in April. On a yearly basis, industrial production grew 1 percent, reversing last month's 2.4 percent drop. Economists had forecast output to drop 0.7 percent annually
Meanwhile, the U.K. visible trade deficit narrowed sharply in April largely reflecting a decline in imports, the Office for National Statistics said. The deficit on trade in goods fell to GBP 8.2 billion in April from GBP 9.2 billion in March. The April figure was better than the expected GBP 8.8 billion deficit.
Elsewhere, the price of silver was moving lower, while platinum edging up in morning deals.
From the U.S., the Labor Department will release its non-farm payroll report for May at 8.30 a.m ET. Economists expect employment to increase by about 163,000 jobs in May following the addition of 165,000 jobs in April. The unemployment rate is expected to remain unchanged at 7.5 percent.
