Gold prices inched up on Thursday to above US$1,820 per ounce after falling eight consecutive days as US bond yields and the dollar retreated from recent highs on US labour market weakness.
Spot gold was up 0.3% to $1,827 per ounce yesterday morning, attempting a rebound from its weakest levels since March when it touched $1,818.50 on Tuesday.
US gold futures gained 0.4% to $1,841.20.
Data on Thursday showed US private payrolls increased far less than expected in September, easing concerns about a Federal Reserve interest rate hike.
The US labour market fell to its lowest level since June 2021, at only 10.3 million jobs, less than the 11.1 million analysts expected.
Benchmark US 10-year bond yields fell from 16-year highs on Thursday.
The greenback weakened 1.31% in one day, the most since the Covid-19 outbreak in 2020.
YLG Bullion International, the leading gold trader in Thailand, said gold prices rose by $26.10 an ounce on Oct 4 and continued rising by 5-6% to $1,820-1,830 per ounce on Oct 5 before stepping back.
However, investors are selling and taking a profit. Resistance is in a range of $1,843-1,861 per ounce.
If the price cannot stand at this level, there may be greater selling pressure to make a profit, YLG said in a report.
The factors to monitor for gold trading are US non-farm payrolls, slated for release later this week, the trade balance, and the service sector's Purchasing Managers Index.
Thai gold prices dropped 3.5% to 31,900 baht per gold baht weight as the baht strengthened to 36.82 yesterday morning, from 37.05 on Wednesday.
Domestic prices are expected to have a short-term support level at 31,800 baht per gold baht and 32,100 for resistance.
The gold market is under pressure from anticipation the Fed will maintain high interest rates for a longer period, resulting in a downward trend for gold prices.
MTS Gold predicted gold prices remaining in a downward trend, but stabilising at around $1,820 an ounce.
Investors are advised to wait for an opportunity to sell when the market rebounds and buy when the market is oversold, said the gold broker.