The gold price stepped back from earlier highs on Tuesday afternoon to one-month lows following a lacklustre day of trading.
Spot gold was last at $1,123.70/1,124 per ounce, down $9.20 on Monday’s close and its softest since October 2. Silver at $15.29/15.34, meanwhile, was virtually unchanged.
The unexpectedly hawkish Federal Reserve statement last month accelerated the drawdown in the yellow metal while the dollar has jumped to multi-month highs – the greenback was last 0.5 percent stronger at 1.0963 against the euro.
With previous concerns over global growth and volatility having eased, the Federal Open Market Committee (FOMC) is giving serious consideration to lifting rates in December.
Major data releases from the US between now and that meeting are now seen as crucial in determining if a lift-off is justified before the end of the year.
US data today undershot – factory orders for September at -1.0 percent missed a forecast of -0.8 percent. IBD/TIPP economic optimism at 45.5 also fell short of the expected 45.5.
But Friday’s jobs report is the week’s blockbuster release – the US is seen adding 179,000 non-farm jobs in October, up from 142,000 in September.
Platinum and palladium have also come under fire, as reflected in the drawdown in ETF holdings. Platinum-backed ETFs have seen drawdowns of about 160,000 ounces so far in October, taking overall holdings to their lowest since early 2014, while palladium ETFs have seen outflows of 207,000 ounces this month.
Platinum was last down $10 at $956/965 per ounce, the lowest since October 9, and palladium fell $4 to $638/643, the softest since September 23.
(Additional reporting by Dalton Barker, editing by Mark Shaw)