Finished! USD Surge Eliminates Gold Profits

 The precious metal gold is again struggling to find traction after failing to sustain an overnight gain following the re -strengthening of the US dollar.

Gold initially gained support early in the session after published US ADP private employment data showed a less encouraging reading, with an increase of just 330,000 jobs from an expected increase of 695,000 in July.

Gold prices jumped to a one -and -a -half -month high of $ 1,832 an ounce following the data, before plunging back to a low of $ 1,806 an ounce after the US dollar soared higher following hawkish statements by Federal Reserve (Fed) policymakers.

Fed Vice Chairman Richard Clarida said the conditions for raising interest rates could be reached by the end of 2022, and was confident that the central bank would announce a reduction in its asset purchase program later this year.

The statement was also supported by several other policymakers, one of whom, Fed Louis President James Bullard said a faster reduction in bond purchases would pave the way for a rate hike next year, if needed.

Also depressing gold trading, was when the published ISM survey services PMI data showed the strongest increase in the sector since 1997 in July.

In the Asian session, gold traded gloomily around $ 1,809 per ounce, while gold futures traded at $ 1,812 per ounce.

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