Gold prices fell to a new two-month low for the second day in a row on Thursday

PRECIOUS METALS

Gold prices edged slightly higher in Asia on Friday with the focus on nonfarm payroll figures from the U.S. with the key indicator in Fed interest rate decision making particularly in the spotlight for chances of tipping a rate hike as early as the month.

Gold for December delivery on the Comex division of the New York Mercantile Exchange rose 0.08% to $1,318.15 a troy ounce. According to Investing.com's Fed Rate Monitor Tool, investors are pricing in a 24% chance of a rate hike by September.Overnight, gold prices fell to a new two-month low for the second day in a row on Thursday, as investors looked ahead to data on U.S. nonfarm payrolls on Friday to see if the economy is strong enough to withstand a rate hike in the coming weeks.

BASE METALS

LME copper should move at USD 4,620-4,660/mt today and SHFE 1610 copper will range between RMB 36,300-36,600/mt. Spot prices in China are expected to trade at premiums of RMB 50-100/mt.Diverging trend will continue on base metal market on Friday with eyes on US nonfarm payroll report.

US August ADP employment data beat forecast, which may indicate a positive reading of nonfarm payroll report. But employment sub-index of US August Markit manufacturing PMI recorded a 4-month low and that of ISM manufacturing index, Dallas Fed’s and Philadelphia Fed's manufacturing index all weakened. This raises uncertainties about the performance of US August nonfarm payroll report.

ENERGIES

Crude prices rose on Friday after losses of more than 3 percent a day earlier, with investors treading cautiously ahead of key U.S. employment data that will help gauge the health of the world's largest economy and oil consumer.Brent and West Texas Intermediate crude futures are on track for their biggest weekly losses since mid-January, hit by oil inventory builds and weak U.S. manufacturing data.

Investors are also skeptical that Organization of the Petroleum Exporting Countries (OPEC) and other producers such as Russia will agree to cut production at a meeting in Algeria later this month despite Saudi Arabia's efforts to boost prices.

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